The company released its 2023 annual report and 2024 quarterly report, and the performance growth exceeded expectations. In 2023, revenue reached 5.703 billion yuan, +32.96% year on year; net profit to mother reached 407 million yuan, +58.52% year on year; gross profit margin 17.91%, +0.31 pct year on year, net profit margin 7.16%, +1.20 pct year on year. Among them, 23Q4 revenue reached 1.797 billion yuan, +34.97% YoY, net profit to mother of 129 million yuan, +45.93% YoY, gross profit margin 17.37%, -1.16pct month-on-month, net profit margin 7.21%, and -0.67pct month-on-month. 24Q1 revenue of 1,571 billion yuan, +36.81% year over year; net profit to mother of 121 million yuan, +47.76% year over year; gross profit margin 16.14%, -1.23pct, net profit margin 7.75%, +0.54 pct month on month. Revenue growth was strong, and profit performance exceeded expectations.
The main business performed well, and gross margin remained stable. In 2023, the company's automobile stamping dies and metal structural parts revenue reached 4.433 billion yuan, +36.09% year on year, gross profit margin of 17.67%, year on year +0.58pct; of these, NEV mold and structural parts revenue reached 3,674 billion yuan, +43.68% year on year, gross profit margin 19.44%, year-on-year +0.29pct. Optical storage structural component revenue reached 546 million yuan, +1.96% year over year, gross profit margin 15.17%, and -0.09pct year over year. The core business grew rapidly, and the gross profit level remained stable.
Net operating cash flow increased, and repayment capacity gradually improved. The net cash flow from the company's operating activities in 2023 was $367 million, +148.67% year-on-year. Affected by factors such as the expansion of sales scale, cash flow from 24Q1 operating activities was slightly pressured. Cash inflows increased year-on-year during the same period, and repayment capacity is expected to gradually improve to repair cash flow pressure.
Profit forecasting and investment advice. The company is deeply involved in precision stamping dies and metal structural parts, and is expected to benefit from the continuous development of the new energy industry. The company's revenue for 2024-2026 is estimated to be 82.8 billion yuan, 111.9 billion yuan, and 13.28 billion yuan, respectively, and net profit to mother of 6.5, 8.5 billion yuan, and 1.01 billion yuan, respectively. The company was given 15 times PE in 2024, corresponding to a reasonable value of 47.95 yuan/share, maintaining a “buy” rating.
Risk warning. New energy vehicle sales and power battery sales fell short of expectations; market competition increased risk; risk of fluctuating raw material prices; risk of insufficient technological innovation capacity.