Description of the event
The company released its 2024 quarterly report, achieving revenue of 9.493 billion yuan, an increase of 3.47% over the previous year, and realized net profit of 716 million yuan, an increase of 11.58% over the previous year, and realized net profit of 718 million yuan without return to mother, an increase of 12.63% over the previous year.
Incident comments
The revenue scale of 2024Q1 has achieved steady growth, and the state-owned enterprise reform has achieved remarkable results. The performance growth rate continues to be higher than the revenue growth rate.
2024Q1's revenue increased 3.47% year on year to 9.493 billion yuan, net profit after year increased 11.58% year on year to 716 million yuan, and net profit without return to mother increased 12.63% year on year to 718 million yuan. The company's gross margin in a single quarter reached a record high, mainly due to the company's stable downstream demand, balanced internal production and balanced delivery progressing smoothly, and state-owned enterprise reform equity incentives implemented internal firepower to enhance efficiency, and profitability continued to improve.
Downstream demand is strong, and the pace of delivery continues to accelerate at the company level to ensure smooth acceptance of demand. At the end of the 2024Q1 period, the company's inventory balance decreased by 39.44% from the beginning of the period to 7.055 billion yuan. The main reason was that the pace of production and delivery continued to accelerate, and products in progress decreased. At the same time, the company's accounts receivable increased by 42.98% compared to the beginning of the period to 10.186 billion yuan, mainly due to an increase in sales products.
The company actively prepares goods upstream for production to ensure smooth subsequent delivery. The company's monetary fund balance at the end of the 2024Q1 period decreased by 48.23% to 8.062 billion yuan compared to the beginning of the period, mainly due to an increase in payment of purchase payments. The company's 2024Q1 contract asset balance increased to 4.457 billion yuan, mainly due to an increase in sales products, indicating that the downstream boom continues to rise, the company's production and delivery tasks are full, and the company is actively preparing goods and production upstream.
Profit forecast and valuation: The company is expected to achieve net profit of 37.77, 46.99, and 5.859 billion yuan in 2024-2026, with year-on-year growth rates of 25.6%, 24.4%, and 24.7%, respectively. Corresponding to the market value on April 29, 2024, PE is 28, 22, and 18 times, respectively.
Risk warning
1. Demand is not issued in a timely manner;
2. The risk of production capacity expansion falling short of expectations.