Event: The company released its 2023 annual report and 2024 quarterly report. In 2023, it achieved operating income of 1,415 million yuan, 5.79% year on year; net profit attributable to mother was 139 million yuan, or -37.10% year on year; realized net profit after deduction of 124 million yuan, -4.36% year on year. 2024Q1 achieved operating income of 381 million yuan, or 21.21% year on year; net profit attributable to mother of 55 million yuan, or 53.66% year on year; realized net profit after deduction of 53 million yuan, or 65.61% year on year.
High performance growth, and the market share of the servo system business increased rapidly. The company's gross margin for 2023 was 38.25%. The gross margin of 2024Q1 was 36.92%, which remained high overall; in terms of cost ratio, sales expense rate/management expense ratio/R&D expense ratio in 2023 were 9.87%, 5.51%, 14.86%, and 2024Q1 were 7.11%, 4.77%, and 12.36%, respectively, and the level of R&D expenses was high. By business: Servo business, sales revenue in 2023 was 53,9785 million yuan, up 25.78% year on year. 2024Q1 achieved sales revenue of about 156.6922 million yuan, an increase of about 43.1% year on year. The company achieved rapid growth in emerging industries such as photovoltaics, lithium batteries, robotics, and semiconductors. 2) Stepper Systems achieved sales revenue of 669.34,900 yuan in 2023, up 1.63% year on year; 2024Q1 achieved sales revenue of about 15.754559 million yuan, up about 2.3% year on year; 3) Control technology business sales revenue in 2023 was 177.3538 million yuan, down 11.49% year on year, and PLC grew rapidly. 2024Q1 achieved sales revenue of about 56.970 million yuan, a year-on-year increase of about 44.1%.
In line with the humanoid robot industry trend, the production capacity of frameless motors has increased dramatically. The company has been deeply involved in the field of robotics since 2018, and has taken humanoid robots as an important strategic business direction, launching core products such as high-density frameless torque motors, CD servo drives, hollow encoders, hollow cup motors, and supporting micro servo systems. Currently, the company has successfully mass-produced FM series frameless motors, with an annual production capacity of 300,000 units.
Profit forecast: We expect the company's net profit to be 2.49, 3.12, and 370 million yuan respectively, up 79.7%, 25.2%, and 18.8% year-on-year. The market value as of April 29 corresponds to a 24-25 PE 25 or 20 times.
Risk factors: The implementation of humanoid robots falls short of expectations, worsening competition patterns, macroeconomic cyclical fluctuations, industrial policy adjustments, and the risk of rising raw material prices.