Event: The company released its 2023 annual report and 2024 quarterly report
In 2023, the company achieved revenue of about 923 million yuan, about +24.99% year on year; net profit to mother was about 202 million yuan, about +38.87% year on year. The company achieved revenue of about 242 million yuan in 1Q24, about +31.73% year on year; net profit to mother was about 65 million yuan, about +58.6% year on year.
The company's annual performance was in line with expectations, and revenue and profit continued to grow at a high rate 1) Micromotor revenue reached about 369 million yuan, about +37.61% year on year. The company actively developed new micromotor products and expanded terminal application scenarios for motor products, and the company's business grew rapidly for many types of motors; 2) Thanks to the company's technology accumulation and new customer development in the cleaning field, the company's revenue in the fluid technology product field maintained steady growth; cleaning systems and cleaning pumps achieved revenue of about 267 million yuan and 200 million yuan respectively; 3) The price of raw materials has declined from a high point compounded by the effects of scale. The company's gross margin increased further to 36.25% in 2023, about +3.10pct compared to the previous year. Net profit margin increased to 21.89%, +2.19pct.
Products related to ADAS cleaning systems are expected to accelerate into the fixed cycle. The company's products have a forward-looking layout in the field of cleaning systems. Compared with traditional cleaning system products, the degree of intelligence and complexity of ADAS active sensing cleaning system products has greatly improved, and there will be good market prospects in the field of high-level autonomous driving in the future. The company's related products have been tested and system adapted to many customer models. With the accelerated implementation of L3 level autonomous driving, the company's related products will gradually be industrialized. In 2023, the company's active sensing cleaning pump products have obtained small-batch targets from some customers, and it is expected that more incremental models will enter the fixed stage in 2024.
The range of motor products continues to be rich, and humanoid robots will create a third growth curve in 2024. The company will continue the strategy of expanding the existing industry and further explore the development of emerging racetrack motor categories and fluid products. The humanoid robot industry is still in the early stages of introduction from 0 to 1, but the overall industry is developing rapidly, and industry support policies continue to be superimposed. In the future, the industry is expected to bring broad emerging incremental demand to the motor industry. For example, the original small-demand motor types such as frameless torque motors and hollow cup motors will gain a large amount of incremental market space.
Investment advice
We expect the company's revenue from 2024 to 2026 to be about 12.1 billion yuan, 15.6 billion yuan, and 1.95 billion yuan, respectively, or +31.0%, +28.6%, and +25.4% year-on-year, respectively. Net profit attributable to mother was approximately RMB 2.6, 350 million and 450 million, respectively, or +30.0%, +32.5%, and +28.2% year-on-year, respectively. The current stock price corresponds to PE at 23.9, 18.0, and 14.1 times, respectively. Considering the continuous expansion of incremental application scenarios for automotive micromotors, the customer terminal penetration rate continues to increase, the growth path is clear, and the “buy” rating is maintained.
Risk warning
Supporting customer sales fell short of expectations; new product expansion fell short of expectations; raw material prices rose; risk of exchange rate fluctuations.