24Q1 performance increased, and profits continued to improve. The company released its annual report for the year 23 and the quarterly report for the year 24. In Q1, the company achieved revenue of 284 million yuan, an increase of 19.4% over the previous year, and realized net profit of 54.61 million yuan to mother, an increase of 33.6% over the previous year. On the profit side, the company's 24Q1 gross margin reached 44.42%, up 3.1 pct year-on-year from 23Q1; the company's 23Q4 gross margin reached 46.3%, setting a new high.
Over the past two years, the company has achieved a quarterly increase in gross margin. The core reason is the increase in the proportion of high-end product structures and the acceleration of overseas expansion. Essentially, the competitiveness of the company's products continues to improve. In '23, the company's instrument product revenue was 135 million yuan, up 30% year on year; professional instrument revenue reached 53 million yuan, up 26.2% year on year. In high-end product instruments and high-voltage electric power products, the company's products have achieved rapid growth, which has led to structural optimization.
The net interest rate reached a new high, and the product structure was optimized. For the full year of 2023, the company achieved a gross profit margin of 43.3%, another record high, an increase of 7 pcts over the same period in 2022. The high-end products launched by the company include 2.5G oscilloscopes, etc., and sales continue to penetrate, gradually optimizing the company's instrument product structure.
As 4G bandwidth oscilloscopes and other high-end products are sold, the company's gross margin center is expected to increase further in the future. The company's core advantages include: (1) a comprehensive instrument enterprise with multiple SKUs: extensive downstream reach and effective mitigation of fluctuations; (2) strong manufacturing and management capabilities: the company has perfect manufacturing lines and efficient product and customer management capabilities; (3) stable cooperation and excellent dealer system: the company has cooperated with core dealers for many years, the cooperation situation is stable, and dealers effectively expand new products. In recent years, the company's new products have been launched rapidly, and high-end instrumentation products have gradually been implemented, and it is expected that it will continue to grow in the future.
Profit forecasting and investment advice. The company's net profit for 24-26 is estimated to be 2.12/2.71/333 million yuan, corresponding to EPS of 1.91/2.45/3.01 yuan/share. Referring to comparable company valuations, the company is given 30 times PE in 24 years, with a corresponding reasonable value of 57.42 yuan/share, giving it a “buy” rating.
Risk warning. The risk of new product development falling short of expectations, the risk of increased industry competition, and the risk of overseas market development falling short of expectations.