The pace of delivery affects revenue recognition, and profits are under phased pressure
Langjin Technology released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 90 million yuan, yoy +17%, net profit to mother of -0.03 billion yuan, yoy +94.5%, net profit after deducting non-return to mother of -0.05 billion yuan, yoy +91.6%, accounting for credit impairment losses of RMB 35 million. Among them, the 2023Q4 company achieved revenue of 340 million yuan, qoq +61%, yoy +26.8%, achieved net profit attributable to mother of -0.05 billion yuan, yoy +36.8%, net profit deducted from non-return mother -0.06 million yuan, yoy +46.5%. 2024Q1 achieved revenue of 130 million yuan, yoy +11.9%, qoq -63.2%, realized net profit to mother of 0.2 billion yuan, yoy -12.3%, net profit deducted from non-return mother of -0.2 billion yuan, yoy -10.3%. Mainly due to the seasonal sales confirmation of the company's sales, Q1 revenue confirmation fell short of expectations, and the scale of losses increased. Single Q1 gross margin and net margin were 24.1%/-17.1%, respectively, +2.0/-15.6pct month-on-month, respectively. Considering that the company's new business is still in the early stages of expansion, and profit pressure is high, we lowered the company's profit forecast for 2024-2025. It is estimated that its 2024-2025 net profit will be 0.79/ 102 million yuan (originally 1.40/211 million yuan), an additional 2026 profit forecast of 136 million yuan, EPS of 0.86/1.11/1.48 yuan, and PE corresponding to the current stock price is 20.5/15.8/11.8 times, respectively. Considering the scale of its new business, the profit release capacity is expected Improved, maintaining a “buy” rating.
The profitability of rail transit air conditioners has increased significantly, speeding up the launch of products
In 2023, the company's rail transit air conditioning business achieved revenue of 511 million yuan, yoy -0.8%, gross margin of 34.4%, yoy+4.9pct, which significantly improved the profitability of the company's business due to lower prices for upstream IGBTs and other electronic components. Furthermore, the company accelerated the export of rail transit air conditioning products, and won new bids for the Israel/Tel AvivPurpleLine project, the France/Montpellier Tram Car project, the Swedish/SJ AB EMU project, and the Guadalajara Mexico project in 2023. Successive deliveries of overseas orders are expected to increase the company's rail transit business profits.
Heat pump drying and energy storage temperature control expand the second and third growth curve The company's new energy and intelligent equipment business achieved revenue of 276 million yuan, yoy +67.3%, gross margin of 13.92%, yoy+12.6pct. The intelligent environmental control system business achieved revenue of 74 million yuan, yoy +79.4%, gross margin of -2.4 pct and yoy-3.5 pct. The revenue scale of both new businesses has expanded significantly, but due to high upfront costs, profitability is currently relatively poor.
Risk warning: The cost reduction of heat pump dryer products falls short of expectations; order revenue confirmation falls short of expectations.