Full year of 2023:1) Achieved revenue of 2,237 million yuan, +2.18% year over year; realized net profit of 205 million yuan, +92.38% year over year; realized net profit without deduction of 148 million yuan, +67.09% year over year. 2) Annual gross profit margin of 25.34%, +4.29pct year on year; net profit margin 9.15%, +4.29pct year on year; net profit margin of 6.59% without return to mother, +2.56pct year on year. 3) The cost rate for the period was 12.1%, +2.25pct year on year, and the sales/management/R&D/finance expense ratios were 4.08%, 4.09%, 3.61%, and 0.32%, respectively, with year-on-year changes of +0.5, +0.53, +0.76, and +0.46pct, respectively.
2023Q4 single quarter: 1) Achieved revenue of 717 million yuan, -1.69% YoY, +55.4% month-on-month; realized net profit of 144 million yuan, +233.24% YoY, +1179.4% month-on-month; realized net profit of 100 million yuan, +262.49% YoY, +783.28% month-on-month.; 2) Q4 gross profit margin of 32.74%, YoY +5.76pct, month-on-month +12.56pct; Net profit margin to mother 20.08%, YoY +14.16pct, month-on-month + 17.64pct; net profit margin without return to mother 13.93%, +10.15pct year over year, +11.48pct month-on-month.
By product: 1) Electrolytic copper foil: Electrolytic copper foil sales revenue of 1,140 million yuan, accounting for 50.94% of total revenue; 2) Oil and gas products: sales revenue of 846 million yuan of oil and gas products, accounting for 37.82% of total revenue; 3) Electric and wind power products: sales revenue of electric and wind power products is 140 million yuan, accounting for 6.24% of total revenue. 4) Steel: Steel sales revenue of 112 million yuan, accounting for 5.00% of total revenue.
By region: 1) Mainland China: Domestic sales revenue of 1,820 billion yuan, up 14.44% year on year, accounting for 81.36% of total revenue, gross profit margin of 27.91%, up 5.52 pct year on year; 2) Overseas: export sales revenue of 417 million yuan, down 21.32% year on year, accounting for 18.64% of total revenue, gross profit margin of 14.11%, down 0.51 pct year on year.
Hongtian Technology's strong performance: in 2023, it achieved revenue of 1,140 million yuan, +92.42% year over year; achieved net profit of 257 million yuan, +95.90% year over year, and achieved a net profit margin of 22.54%, an increase of 0.41 pct over the previous year. The performance and quality of the company's high-end electrolytic copper foil production equipment has been highly recognized by domestic and foreign customers. Hongtian Technology's high-end electrolytic copper foil production equipment ranks at the leading level in the industry in key performance indicators such as foil accuracy, production efficiency, energy saving and safety, and winding length, and some can reach the international advanced level. The “vacuum magnetron sputtering all-in-one” composite copper foil vacuum coating equipment developed by Hongtian Technology is the first in the country to use all-in-one equipment to simultaneously use vacuum magnetron sputtering technology to coat 1 μm of copper on both sides of the polymer material base film, and stable transmission of various key performance indicators such as equipment operating power, target utilization rate, sputtering deposition rate, etc., and ultra-thin substrate film film technology, heat damage suppression technology for ultra-thin substrates, high-speed film-forming cylindrical magnetron sputtering cathode technology, etc., as well as convenient process control and process control Environmental protection, energy saving, modular design, etc. all rank in the industry Leading level.
Profit forecast: Due to the slowdown in capital expenditure growth in the domestic lithium battery industry, we lowered our profit forecast for Dawson shares. We expect net profit of 2.96, 4.12, and 543 million yuan (24-25 years ago: 3.72, 456 million yuan), corresponding to PE of 15.73, 11.31, and 8.57 times, maintaining the “buy” rating.
Risk warning: the risk of changes in the macro environment and industrial policies, rising raw material costs, product upgrades and alternative routes to emerging technologies