高端产品营收快速增长，产品结构持续优化。2023 年，公司高端产品营业收入同比增长55%，高端产品占比提升至22%，同比提升4pct，拉动四大类产品平均单价同比提升23.38%。从产品的销售单价上看，销售单价3 万以上的产品，销售额同比增长89.91%（2024Q1同比增长32.91%），销售单价5 万以上的产品，销售额增长157.82%（2024Q1 同比增长74.24%）。Incidents:
Dingyang Technology released its 2023 annual report and 2024 quarterly report: In 2023, the company achieved operating income of 483 million yuan, an increase of 21.50% over the previous year; net profit to mother was 155 million yuan, an increase of 10.29% over the previous year. In the first quarter of 2024, the company achieved operating income of 104 million yuan, an increase of 1.62% over the previous year, and realized net profit of 0.3 billion yuan, a year-on-year decrease of 15.33%.
Investment highlights:
High-end product revenue is growing rapidly, and the product structure continues to be optimized. In 2023, the company's revenue from high-end products increased 55% year on year, and the share of high-end products increased to 22%, up 4 pct year on year, driving the average unit price of the four categories of products to increase by 23.38% year on year. Looking at the unit sales price of products, sales of products with a sales unit price of 30,000 or more increased 89.91% year on year (up 32.91% year on year in 2024Q1), and sales of products with a sales unit price of 50,000 or more increased by 157.82% (2024Q1 increased 74.24% year on year).
Overseas markets are growing steadily, and revenue from core domestic RF microwave products has increased. In 2023, the company's overseas revenue was 28,900 yuan, up 16.80% year on year. Compared with 14.51% in 2022, the year-on-year growth rate increased 2.29pct. The advantage of overseas channel construction is obvious. Domestic sales of core products such as RF microwave increased rapidly. In 2023, the company's domestic revenue for high-resolution digital oscilloscope products increased 68.77% year on year, and domestic RF microwave products increased 59.70% year on year.
New products are introduced repeatedly, laying the foundation for future development. In 2023, the company released 7 new products, including 3 12-bit high-resolution digital oscilloscopes, 1 12-bit, 8-channel digital oscilloscope, 1 26.5 GHz handheld vector network analyzer, 1 four-channel programmable linear DC power supply, and 1 handheld signal analyzer. 2024Q1, the company released 2 new products, including the SDS7000A series of high-resolution digital oscilloscopes with a maximum bandwidth of 8 GHz, and the SDM4000A series of high-speed six and a half digit digital multimeter. Product iteration and category expansion have laid a positive foundation for the company's future development.
Gross margin continued to improve, and R&D and sales expenses increased year-on-year. In 2023, the company's overall gross margin was 61.30%, up 3.76pct year on year; the company's R&D expense ratio increased 3.33pct to 17.82% year on year, sales expenses increased 1.08pct to 15.50% year on year, and management expenses increased 0.3 pct to 4.26% year on year. 2024Q1, the company's gross margin increased by 3.93 pct to 63.10% year on year; the company's R&D expense ratio increased by 3.67 pct to 20.07% year on year, and sales expenses increased by 1.46 pct to 17.12% year on year.
Profit forecast and investment rating Considering the short-term pressure on the company's 2024Q1 performance, we slightly lowered the company's 2024/2025/2026 revenue forecast to 575/6.97/887 million yuan, respectively; 2024/2025/2026 net profit to mother was 1.884/2.30/287 million yuan, respectively, corresponding PE was 28/23/18 times; but considering the high growth rate of the company's high-end product sales revenue and 2024Q1 newly released the highest 8GHz bandwidth and 12bit high resolution Digital oscilloscope series products, product competitiveness continues to improve, and the gross profit structure is expected to continue to improve, so they maintain an “gain” rating.
Risks suggest that downstream customer development progress falls short of expectations; new product development and implementation progress falls short of expectations; risk of tight component supply; order growth falling short of expectations; risk of large fluctuations in secondary market stock prices; risk of loss of core technical personnel; and risk of falling gross margin.
