On April 25, the company released the 2023 Annual Report & 24Q1 Performance Report. In 2023, the company achieved operating income of 320 million yuan, a year-on-year increase of 19.52%; net profit to mother was 57.48 million yuan, up 6.89% year on year, and non-net profit deducted from mother was 51.69 million yuan, an increase of 92.72% year on year. The 24Q1 company achieved operating income of 31.86 million yuan, an increase of 346.22% over the previous year; net profit to mother was 21.27 million yuan, and non-net profit to mother was 25.54 million yuan.
The revenue structure continued to be optimized, and gross margin increased markedly. The company increased its marketing efforts for engineering simulation software and continued to increase the share of software revenue. In 2023, the company achieved revenue of 320 million yuan, of which engineering simulation software revenue from high gross margin was 188 million yuan, an increase of 39.37% over the previous year, accounting for 58.57% of total revenue, close to 60%. Driven by this, the company's overall gross margin in 2023 was 69.44%, up 6.03pcts from 2022.
24Q1 revenue increased year-on-year, and industry sentiment further improved. The 24Q1 company's revenue of 31.86 million yuan was +346% year-on-year, mainly due to the fact that some contract orders were deferred from 23Q4 until confirmation was completed in the current quarter. Combined, the business boom itself in the first quarter of this year was relatively good, so it achieved good revenue side growth. Looking ahead to the full year, we believe the company will still achieve faster revenue growth and better profitability performance.
The civilian market can be expected to grow, opening up a new robotics circuit. In addition to the special fields of traditional strengths, the company is actively expanding into new business areas. 1) In November 2023, the company completed the acquisition of Yangpu Intelligence, which is expected to rely on Yangpu Intelligence's own customer and channel accumulation in the civil sector to enter more civilian industries, thereby broadening the application areas of CAE products and further opening up market space. 2) In February 2024, the company officially announced the establishment of a robotics division to develop professional software and solutions for the robotics industry. Suochen's robot design software will cover the complete development process of parallel robots (including humanoid robots), from functional design, configuration synthesis, performance analysis to structural design optimization, further lowering the technical threshold for robot development. In March 2024, the company launched a high-performance six-dimensional force and torque sensor, whose performance has reached the leading international level.
Investment advice: In line with the company's 2023 annual report, we adjusted the company's revenue and profit forecast, considering the continued high boom in key downstream specialty industries and the accelerated pace of personnel recruitment since the company went public in 23. We expect the company's revenue for 2024-2026 to be 4.51/6.00/786 million yuan, respectively (the forecast value for 2024-2025 is 4.69/6.
06 billion yuan), and net profit to mother was 0.69/0.95/129 million yuan, respectively (the forecast value for 2024-2025 is 0.90/1.
05 billion yuan), the corresponding PE was 79/57/42 times, and the corresponding PS was 12/9/7 times, respectively, maintaining the “buy” rating.
Risk warning: risk of private customer expansion falling short of expectations; risk of product development and technology upgrading falling short of expectations; risk of increased industry competition, etc.