Domestic smart cutting leader maintains “buy” rating

Considering the company's increased investment in R&D and marketing in the early stages, we lowered the original 2023-2024 profit forecast and added the 2025 profit forecast. We expect net profit to be 0.80, 1.10, and 145 million yuan (2023-2024 original value is 0.92, 123 million yuan), EPS is 1.35, 1.85, 2.44 yuan/share (the original value for 2023-2024 is 1.56 and 2.08 yuan/share). The current stock price corresponds to PE 21.3, 15.5, 11.7 times, the company is a leading enterprise in the field of intelligent cutting in China. It is expected to benefit from the double dividends of increased industry penetration and localization opportunities, and maintain a “buy” rating.

Incident: The company announced its 2023 performance forecast. The high performance growth is expected to achieve net profit of 69.00 million yuan to 84.00 million yuan in 2023, which will increase 236.39 million yuan to 386.39 million yuan, an increase of 52.11% to 85.18% over the previous year. It is estimated that net profit not attributable to mother will be 65.3 million yuan to 79.5 million yuan in 2023, an increase of 23.8870 million yuan to 38.87 million yuan, an increase of 57.68% to 91.97% over the previous year. The high increase in the company's performance is mainly due to the gradual recovery of demand from domestic and overseas downstream industries. At the same time, the company relied on advantages in technology, quality, brand, etc., to further expand domestic and foreign markets and increase its market share.

Overseas markets have bright prospects, and the company's advantages continue to expand

The company has a significant competitive advantage in overseas markets and is expected to open up new growth points. (1) The company has the core technology with independent intellectual property rights, and has taken the initiative to improve the performance and function expansion of products; (2) the main technical parameters of the company's products are basically the same as first-class products from overseas, and some indicators have even been surpassed, and the superior cost performance ratio enhances the competitiveness of the products; (3) the company has set a benchmark enterprise in many downstream industries, laying the foundation for rapid expansion of the scale of various industries; (4) The company continues to bring new products to large-scale international exhibitions in the composites, printing and packaging, textile and home textiles industries held in Europe, America and other regions, significantly enhancing the company's brand effect and effectively expanding customers Resources.

The product matrix is constantly being improved, and the expansion of new products is worth looking forward to

The company continues to be deeply involved in the field of non-metallic intelligent cutting, continuously enriching and expanding the product range, and developing an efficient and high-end product line. According to the company's announcement, new products such as laser die-cutting machines and flexible blade die-cutting machines developed by the company have also been gradually introduced to the market, achieving sales of new products, and future product matrix expansion is worth looking forward to.

Risk warning: downstream demand falls short of expectations; company R&D falls short of expectations; new product promotion falls short of expected risk.