数码喷印设备实现快速增长。2023 年公司数码喷印设备/墨水业务收入分别实现6.1/4.1 亿元，同比+32.4%/+8.2%；毛利率分别同比+1.74/+2.1ppt 至45.3%/53.9%。1）数码印花设备：2023 年公司进一步开展第三代智能超高速Single pass 数码喷印装备研发，从而实现与传统圆网印花产量相当。此外，新并购的山东盈科杰2023 年实现营收约0.6 亿元，有利于提升数码喷印设备市场份额。2）墨水：2023 年公司完成对天津晶丽剩余33%股权的收购，同时通过子公司天津宏华数码新材料有限公司进一步打开墨水耗材的扩产空间。2023 results are in line with our expectations
The company announced 2023 results: the company achieved revenue of 1,258 million yuan, +40.6% year on year; net profit to mother was 336 million yuan, +34.0% year over year. The company achieved steady growth in revenue and net profit in 2023, in line with our expectations. Corresponding to 4Q23, we achieved revenue of 376 million yuan (+90.41% YoY) and net profit to mother of 86 million yuan (+51.70% YoY). 1Q24 achieved revenue of 370 million yuan, +30.23% year over year; net profit to mother was 87 million yuan, +34.95% year over year.
4Q23 gross margin fluctuated. The company achieved gross margins of 43.1%/45.6% in 4Q23/2023, respectively; net profit margins were 22.9%/26.7%, and -6.0/-1.3ppt, respectively. The overall decline in gross margin was mainly due to new additions and a relatively low gross margin for sewing equipment and digital printing equipment.
Digital printing equipment achieved rapid growth. In 2023, the company's digital printing equipment/ink business revenue reached 61/41 billion yuan, +32.4%/+8.2% year-on-year; gross margin was +1.74/+2.1ppt to 45.3%/53.9%, respectively. 1) Digital printing equipment: In 2023, the company will further develop third-generation intelligent ultra-high speed single pass digital printing equipment, thus achieving output comparable to traditional circular screen printing. In addition, the newly acquired Shandong Yingkejie achieved revenue of about 60 million yuan in 2023, which is conducive to increasing the market share of digital printing equipment. 2) Ink: In 2023, the company completed the acquisition of the remaining 33% of Tianjin Jingli's shares, while further opening up space for expanding the production of ink consumables through its subsidiary Tianjin Honghua Digital New Materials Co., Ltd.
Development trends
Equity incentives strengthen confidence. On April 29, 2024, the company announced the 2024 employee stock ownership plan management measures. The first unlocking period target was based on 2023 net profit, with a net profit growth rate of not less than 30%; the second unlocking period target was based on 2023 net profit. The cumulative net profit growth rate for 2024 and 2025 was not less than 200%.
The fund-raising project was officially put into operation, and production capacity was further increased. In 2023, the company's fund-raising project “Intelligent Factory with an annual output of 2,000 sets of industrial digital inkjet printing equipment and consumables” has been officially put into operation, and the plant infrastructure work for the “Intelligent Production Line with an annual output of 3,520 sets of industrial digital inkjet printing equipment” project has been basically completed. We expect the company to further expand the production capacity of textile digital printing equipment and add equipment production capacity in the fields of packaging, books, decorative building materials, etc., to increase the equipment market share.
Profit forecasting and valuation
Due to the rapid growth of the company's digital printing equipment orders, we raised 2024 net profit by 4.5% to 460 million yuan, and introduced 2025 revenue/net profit of 2.23 billion yuan for the first time. The current stock price corresponds to 2024/2025 P/E of 27/19x. The target price remains unchanged at 122.32 yuan, corresponding to 2024/2025 P/E of 32/23x, maintaining the industry rating, with a corresponding increase of 20.7%.
risks
The recovery in industry demand falls short of expected risks, new business development falls short of expectations, etc.
