Event: The company released its 2023 annual report. In 2023, the company achieved operating income of 11.446 billion yuan, a net profit of 344 million yuan, a year-on-year net profit of +278.45%, and realized net profit of 231 million yuan without return to mother, +1170.55% year-on-year. The gross sales margin reached 25.17%, +8.30pct year-on-year, and a net sales profit margin of 1.72% year-on-year, and +1.19pct year-on-year. On a quarterly basis, 23Q4 achieved operating income of 2,905 billion yuan, +10.19%/-5.25% YoY, realized net profit of 55 million yuan, +785.48%/-63.40% YoY, and realized net profit withheld from mother of 12 million yuan, turning a year-on-year loss into a profit of -90.00%. The results are generally in line with market expectations.
The consumer electronics business has been rising steadily, and major North American customers have achieved mass production for the first time. Global laptop and mobile phone shipments in 2023 still declined to varying degrees year-on-year. Against this backdrop, the company achieved mass production of Apple phone battery products for the first time while maintaining the supply share of existing customers. According to the Techno Systems Research statistical report, the company's laptop and tablet lithium battery market share in 2023 was 31.10%, basically the same as in 2022, ranking second in the world; the company's smartphone lithium battery market share was 8.18%, +0.75pct compared to the previous year, ranking fifth in the world. Furthermore, in 2023, the company's self-supply ratio of PACK increased steadily, reaching 35.44%, up 7.00pct. In the emerging consumer business, the company actively expanded the fields of smart wearable devices, drones, smart cleaning appliances, power tools, etc., and continued to build new growth poles.
Adjust the mobile storage business strategy to focus on differentiated competition. In 2023, the company's power and energy storage business revenue was 660 million yuan, +43.30% over the same period last year. In order to adapt to rapid changes in the market, the company controlled the pace of production capacity construction in a timely manner. In terms of power, the company's automotive low-voltage batteries have successively been designated by many well-known domestic and foreign car companies, and batch shipments will begin in 2023. It is expected that 2024 will usher in large-scale market volume. In terms of energy storage, the company continues to supply customers such as Home Storage Sonnen, and also participated in projects such as the National New Energy Storage Innovation Center construction project and the 50MW inverter booster integrated cabin at the Foshan Energy Storage Station to continue to promote the healthy development of the mobile storage business.
Investment advice: We expect the company to achieve net profit of 9.03/12.02/1610 billion yuan in 2024-2026, +162.4%/+33.1%/+34.0% year-on-year, corresponding EPS of 0.80/1.07/1.44 yuan, maintaining the “buy” rating.
Risk warning: downstream demand falls short of expectations; capacity expansion and product development fall short of expectations; industry competition intensifies.