occurrences
Recently, Huaqin Technology released its 2023 annual report and performance forecast for the first quarter of 2024.
In 2023, the company achieved revenue of 917 million yuan, a year-on-year increase of 36.45%, achieved net profit of 335 million yuan, an increase of 0.48% over the previous year, and net profit after deducting non-return to mother was 385 million yuan, an increase of 23.23% over the previous year. 2024Q1, the company expects to achieve revenue of 248 million yuan, an increase of 32.57% over the previous year, and is expected to achieve net profit of 114 million yuan, an increase of 29.41% over the previous year.
reviews
1. In 2023, revenue and net profit not attributable to mother maintained a relatively rapid growth rate, and the increase in subsidiary share payments and related expenses affected short-term performance. In 2023, the company achieved revenue of 917 million yuan, an increase of 36.45% over the previous year. Customer model tasks continued to increase, and orders for small-batch trial production of new products increased one after another. Current production and sales increased steadily over the same period last year, and revenue continued to grow rapidly.
Among them, special functional material products and services achieved revenue of 887 million yuan, aerospace parts processing and manufacturing revenue of 111 million yuan, and acoustic metamaterials-related business achieved revenue of 0.18 million yuan. On the profit side, in 2023, the company achieved net profit of 335 million yuan, an increase of 0.48% over the previous year, mainly due to shares generated by the holding subsidiary Shanghai Ruihuasheng to pay 188 million yuan and increased expenses related to Huaqin Guangsheng and Huaqin Aviation Development.
2. In 2023, the company's R&D expenses were 73.5094 million yuan, an increase of 18.64% over the previous year.
The company has a special functional materials research and development team with Professor Zhou Wancheng of Northwestern Polytechnical University as the chief scientist, an acoustic metamaterials research and development team with Professor Chen Yanfeng of Nanjing University as the chief scientist, and a ceramic-based composite materials research and development team with Academician Dong Shaoming of the Shanghai Institute of Silicates of the Chinese Academy of Sciences as the chief scientist, and has gradually formed a research and management talent hierarchy dominated by master's and doctorates who graduated from the above R&D teams. The strength of the R&D team is at the forefront of the industry.
3. 2024Q1. The company expects to achieve revenue of 248 million yuan, an increase of 32.57% over the previous year, and is expected to achieve net profit of 114 million yuan, an increase of 29.41% over the previous year, mainly due to the continuous increase in the company's model tasks and the continuous increase in orders for small-batch trial production of new products, and a steady increase in current production and sales compared to the same period last year.
4. Full of tasks at hand. On January 17 and 30, 2024, the company continuously disclosed two large contracts for stealth materials. The contract values were 310 million yuan (tax included) and 332 million yuan (tax included) respectively. Both contracts were sold by the company's mass production projects, and the product prices were relatively stable.
By the end of March 2024, the parent company had orders of about 800 million yuan for special functional materials, etc., and Huaqin Airlines had accumulated signed orders of about 81 million yuan, and orders of about 55 million yuan had not been executed (not including the number of orders placed by the parent company).
5. Profit forecast and investment rating: We expect the company's net profit to be 5.12, 7.10, and 920 million yuan respectively in 2024-2026, up 53%, 39%, and 30% year-on-year. Corresponding to the current stock price PE, it is 36, 26, and 20 times, respectively, to maintain a “buy” rating.
Risk warning:
There is pressure to reduce product prices; industry competition intensifies; business development falls short of expectations.