期间费用增长，加大研发投入夯实竞争力。根据公司2023 年年报，公司研发投入为0.64 亿元，同比+20.50%，占营业总收入比重为6.22%，同比+1.20pct。多项研发项目取得突破，进一步巩固公司的技术实力，增强行业内竞争力。销售、管理、财务费用分别为0.43、0.37、0.03 亿元，同比+87.87%、-22.27%、-227.50%。其中销售费用增长主要由于员工年终奖以现金奖励方式计入销售费用，同时，市场推广费与业务招待费也有所增加。销售、管理、财务费用率分别为4.20%、3.58%、0.32%，同比变化+2.03、-0.90、+0.57pct。incident. The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved operating income of 1,026 million yuan, -2.73% year-on-year; realized net profit of 166 million yuan, or -31.43% year-on-year.
2024Q1's revenue was RMB 264 million, -7.03% YoY; net profit to mother was RMB 30 million, or -49.66% YoY.
Performance was under pressure, and profitability declined slightly. In 2023, due to market demand, the company's revenue declined slightly; due to a decline in capacity utilization, the share of hard alloy product revenue increased, leading to a decline in profits. The company's business is mainly divided into two categories: CNC tool product revenue was 579 million yuan, -9.98% YoY, gross margin 40.42%; hard alloy product revenue was 445 million yuan, +9.98% YoY, and gross margin was 14.93%. In 2023, the company's overall gross sales margin and net margin were 29.32% and 16.17%, with year-on-year changes of -7.43pct and -6.77pct.
Expenses increased during this period, increasing R&D investment and consolidating competitiveness. According to the company's 2023 annual report, the company invested 64 million yuan in R&D, +20.50% year on year, accounting for 6.22% of total revenue, +1.20 pct year on year. Breakthroughs have been made in a number of R&D projects, further consolidating the company's technical strength and enhancing competitiveness within the industry. Sales, management, and financial expenses were 0.43 billion yuan, 0.37 million yuan, and 0.03 billion yuan, respectively, +87.87%, -22.27%, and -227.50% compared with the same period last year. Among them, the increase in sales expenses is mainly due to the fact that employee year-end bonuses are included in sales expenses in the form of cash rewards. At the same time, marketing expenses and business hospitality expenses have also increased. Sales, management, and finance expense ratios were 4.20%, 3.58%, and 0.32%, respectively, with year-on-year changes of +2.03, -0.90, and +0.57pct.
Focus on the import substitution of high-end tools, and product price increases to help improve the company's profitability. The company continuously improves the product matrix of CNC blades, CNC tools, overall tools, metal ceramics and superhard tools, and promotes the import substitution of high-end tools. In 2023, the company developed OP6 series high temperature alloy turning blades for aerospace applications and CVD steel turning OC24 series products for turning wheels and shaft parts in rail transit, etc., and continued to improve the product line. On August 2, 2023, the company issued an announcement that it won the bid for the BMW crankshaft tool management service project, reflecting the company's core competitive advantage in the tool package business. According to the April 29 investor exchange minutes, the company raised prices for CNC tools and hard alloy products in January and April 2024, respectively, to help improve future business performance and overall profitability.
Make every effort to promote the global layout and achieve growth in overseas revenue. In 2023, the company's overseas sales revenue was 140 million yuan, +31.44% year-on-year, accounting for 13.67% of total revenue. Among them, the export revenue of CNC tool products reached 111 million yuan, and the export of CNC tool products accounted for 19.27% of the total revenue of CNC tools. In 2023, the sales volume of the company's overseas brand stores increased rapidly. Overseas sales spread across nearly 60 countries. The average export unit price of CNC tool products was 10.10 yuan, and some overseas customers in Asia, Europe and the United States doubled.
Investment advice. The company developed into CNC tool products and extended to the CNC tool product integration system. It has a comprehensive core technology and perfect talent structure, and the product performance is stable and the accuracy is high. The company focuses on its main business, vigorously promotes exports, so that products can be gradually replaced by domestic products. There is broad scope for future development, and for the first time, coverage was given a “gain” rating. We expect 2024-2026 net profit to mother of 204, 2.68, and 323 million yuan, EPS of 1.28, 1.69, 2.03 yuan, and PE of 17.1, 13.0, 10.8 times.
Risk warning: core competitiveness risk; operating risk; financial risk; macro-environmental risk.