Incidents. The company achieved revenue of 5.7 billion yuan in 2023, +32.96% year on year, net profit of 407 million yuan, gross profit margin of 17.9%, net profit margin 7.2%; 2024q1 achieved revenue of 1.57 billion yuan, +36.8% year on year, net profit to mother of 120 million yuan, 47.8% year on year, gross profit margin 16.1%, net profit margin 7.75%
Downstream demand is booming, and revenue growth has been high. The company focuses on the main business, focusing on new energy circuits, and actively expanding customers in NEVs, power batteries, photovoltaic energy storage and other sectors to accelerate the development of related products. In 2023, benefiting from the boom in demand, the company's NEV/fuel vehicles/energy storage/communication stamping parts revenue reached 36.7/7.6/5.5/63 billion yuan respectively, up 44%/8.4%/2%/47% year-on-year respectively. 2024Q1, new energy sales are booming, and revenue growth remains high, with a year-on-year increase of 36.8%.
The scale effect has increased, and profitability continues to improve. Product structure and scale effects. In 2023, the gross margin of new energy vehicles/ fuel vehicles/ energy storage/ communication stamping parts was 19.4%/9.1%/15.2%/11.4%, respectively. The gross margin of new energy with high revenue contribution and rapid growth increased by 0.29% year on year. The rest declined slightly, driving a steady increase in comprehensive gross margin. At the same time, all cost ratios declined. Net profit increased from 6% in 2022 to 7.2% in 2023, and net profit grew by more than 50%.
2024Q1, as internal cost reduction and efficiency continued to be reflected, the net interest rate increased to 7.75%, both improving year on month.
High quality customers, successful financing, and capacity expansion will help increase future growth. The company's products cover car body structural parts, seat structural parts, battery boxes and energy storage photovoltaic structural parts. The company deeply cooperated with automobile companies such as GAC Aian, BYD, and NIO, and signed a strategic cooperation agreement with Ningde in 2020 to achieve a breakthrough in the battery box business; energy storage structural components are expected to cooperate with Huawei, Everweft Lithium Energy, etc., with great potential for incremental support. In 2024, the company will increase its location, raise 800 million yuan, and lay out four production bases in Dongguan, Guangzhou, Changshu and Yibin. With the release of production capacity, future growth can be expected.
Profit forecasting and valuation: Affected by increased competition for structural components and fluctuations in energy storage demand, we carefully lowered the company's net profit to mother in 2024-2026 of 596/7.5/918 million yuan respectively, corresponding to PE 13/10/9 times, to maintain a “buy” rating.
Risk warning: Continued macroeconomic downturn has led to poor demand in the industry, risk of fluctuations in raw material prices, adverse risks of expanding new customers, and deviations in profit predictions due to falling short of expectations for core customer sales.