Incident: The company released its 2024 quarterly report. In the first quarter, it achieved operating income of 206 million yuan, an increase of 54.72% over the previous year, and realized net profit of 1.34 million yuan, an increase of 104.72% over the previous year, after deducting non-net profit of 13.83 million yuan, the previous value of 31.96 million yuan. The sharp increase in the company's revenue is mainly due to the expansion of the company's business scale and the expansion of market application fields. The revenue of customized 3D printing products, self-developed equipment and raw materials all increased.
The company's revenue increased dramatically, and the three major products jointly promoted development. The main components of the company's revenue are customized products, equipment, and raw materials. The gross margin of 24Q1 sales was 41.25%, down 7.37pct from the previous year. According to the communication situation, the main reason is due to changes in the structure of short-term delivery products, and the company's gross margin is expected to remain within the 40%-50% range throughout the year. The company's net margin was 0.65%, up 22.08pct year over year.
The scale of production continues to expand, and overseas markets have broad prospects. The number of projects under construction in the company at the end of the first quarter increased by 29.2% to 440 million yuan compared to the beginning of '24. According to the exchange situation, the company started construction of fixed increase projects one after another. After implementation, the annual output will increase from the current production of 400 units of printing equipment to more than 1,000 units per year. The company also continues to rent plants to increase production capacity to fully meet rising market demand. At the same time, the company's subsidiary in Frankfurt, Germany began operations and signed numerous agreements with relevant agents to promote overseas business development.
Strong investment in R&D, good cost control. The company's R&D expenses in the first quarter of 24 were 54 million yuan, an increase of 32.01% over the previous year. It invested in the research and development of the three major products, accelerated the pace of domestic replacement of hardware and software, and strived to reduce costs and increase efficiency. Sales expenses were 21 million yuan, management expenses were 0.3 million yuan, and financial expenses were 1.6 million yuan. Expenses for the period decreased by 19.77 pcts year-on-year, and cost control was good.
Profit forecast: We expect the company's revenue for 2024-2026 to be 1,798/24.96/3.393 billion yuan, respectively; net profit to mother of 3.10/4.90/666 million yuan, respectively. The company lays out the entire industry chain, has the ability to integrate “production, learning and research”, and has a long-term development logic. At the same time, the company's expected net profit compound growth rate for 24-26 is higher than that of comparable companies in the same industry, so we give it a “buy” rating.
Risk warning: risk of slowing industry demand, risk of military product price reduction.