The company released its 2024 quarterly report, and the performance continued to grow steadily
2024Q1 achieved total revenue of 617 million yuan, an increase of 20.53% over the previous year; realized net profit of 103 million yuan, an increase of 30.35% over the previous year; and realized net profit of 87 million yuan without return to mother, an increase of 40.42% over the previous year. The company is a leading domestic high-precision satellite navigation and positioning company, and industry and scenario applications continue to expand. Based on this, we maintain the company's profit forecast. We expect net profit of 5.63/7.03/850 million yuan for 2024-2026, corresponding EPS of 1.03/1.29/1.56 yuan/share, respectively. Corresponding to the current stock price PE is 28.1/22.5/18.6 times, respectively, to maintain a “buy” rating.
The ability to control expenses continues to improve, and profitability is gradually strengthened
In terms of profitability, 2024Q1's gross margin was 58.80%, a year-on-year decrease of 0.37pct, a month-on-month increase of 2.33pct, a net margin of 16.29%, an increase of 0.93pct year-on-year, and profitability was strengthened. In terms of costs, the scale effect of the company is evident, and fine management capabilities continue to be strengthened. Sales/management/R&D/finance expenses rates were 18.48%/7.86%/17.42%/0.51%, respectively, -2.94/-0.62/-0.00/-0.43pct. The overall cost rate was 44.27%, -3.99pct year on year, and the cost reduction effect was obvious. The company continued to invest in R&D to enhance its core technical strength. The 2024Q1 R&D cost was 107 million yuan, an increase of 20.56% over the previous year. Based on the core of high-precision navigation and positioning technology, the company lays a solid foundation for the continuous expansion of downstream applications.
Downstream market development has achieved remarkable results. Leading companies in navigation and positioning have broad room to grow, companies focus on high-precision positioning technology, and have achieved remarkable results in developing downstream application scenarios. In 2023, in terms of construction and infrastructure, the “video measurement RTK” high-precision receiver intelligent equipment was launched, and Landstar software has accumulated more than 200,000 registered users; in terms of geospatial information, the company independently developed and broke through long-range lidar core technology, drone-related applications involved in the low-altitude economy, and unmanned ships boosted the hydrology and water market to complete rapid promotion; in terms of resources and utilities, domestic sales of agricultural machinery autonomous driving doubled, and automated deformation monitoring systems used in mines doubled. ; In terms of robots and autonomous driving, the company has reached cooperation with companies such as Easy Control, Sany, and XCMG in the fields of low-speed robots, mining vehicles, port, logistics autonomous driving, etc., and has autonomous driving sensing and decision control algorithm capabilities. The company's core technical strength is strong, providing sufficient impetus for the company's long-term steady growth.
Risk warning: Product development falls short of expectations, industry competition is fierce, and downstream demand falls short of expectations.