Incident: On April 29, the company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved main business revenue of 483 million yuan, an increase of 21.50% over the previous year; realized net profit of 155 million yuan, an increase of 10.29% over the previous year, and net profit after deducting non-return to mother +20.06% year-on-year. In the first quarter of 2024, the company's main business revenue was 104 million yuan, up 1.62% year on year; net profit to mother was 30.3743 million yuan, down 15.33% year on year.
In terms of revenue composition, the company's four main products achieved revenue of 391 million yuan in 2023, accounting for 82.21%, +22.96% year-on-year; revenue from other products was 84.4518 million yuan, +22.81 percent year-on-year. In 2023, the company's overall business gross margin and net margin were 61.30%/32.13%, respectively, +3.76pct/-3.27pct.
Investment in R&D has continued to be increased, and the high-end strategy has paid off. R&D investment in 2023 was 86.0979 million yuan, up 49.44% year on year, accounting for 17.82% of revenue, an increase of 3.33 pcts over 2022.
The company's high-end products continued to maintain a rapid growth trend. The revenue growth rate of high-end products reached 55.00%, and the share of high-end products increased to 22%, an increase of 4 pcts over 2022. From the perspective of product unit sales price, sales of products with a sales unit price of 30,000 yuan or more increased by 89.91% year on year, and sales of products with a sales unit price of 50,000 yuan or more increased by 157.82% year on year.
Focus on the core needs of the market to launch new products, and continue to improve competitiveness. The company launched 7 new products in 2023, and launched 2 new products in the first quarter of 2024, including the SDS7000A series of digital oscilloscopes with 8 GHz bandwidth and 12-bit high accuracy ADC resolution, and the SDM4000A series of high-speed 6 and a half digital multimeters. The release of new products promoted the optimization of the company's product structure, and the company's products continued to expand to high-end.
Investment advice: Leading general electronic measuring instrument manufacturers, product competitiveness and layout have certain advantages.
In 2024-2026, we expect the company to achieve operating income of 625/8.03/1,022 million yuan and net profit to mother of 211/2.63/322 million yuan. The corresponding PE was 25.6/20.5/16.7 times, respectively, maintaining the “gain” rating.
Risk warning: The localization and substitution process falls short of expectations, the company's new product promotion falls short of expectations, and domestic competition intensifies.