Incident: On April 15, 2024, the company released its 2023 annual report, achieving annual revenue of 4.06 billion yuan, +43.29% year over year; net profit to mother was 316 million yuan, +55.53% year over year.
The full-year results were in line with expectations, and orders and revenue continued to grow at a high rate. In 2023, the company signed a tax-inclusive bill of approximately $5.297 billion, +51.01% year-on-year. The company issued an announcement stating that it will strive to reach 8 billion yuan in 2024 and 10 billion yuan in 2025. At home and abroad, overseas market revenue in 2023 reached 2,576 billion yuan, +47.01% year over year; although the domestic market fluctuated due to the economic downturn, the company's differentiated “brand machine” market positioning achieved remarkable results. Revenue in 2023 reached 1.43 billion yuan, +38.14% year over year.
On a quarterly basis, 23Q4 achieved revenue of 1,469 billion yuan, +44.54% year-on-year, and +55.33% month-on-month, a record high in a single quarter; net profit to mother was 96 million yuan, +7.75% year-on-year, and +25.73% month-on-month.
Various business indicators are improving steadily to promote high-quality operations. The company has always implemented a steady and efficient business philosophy and insisted on high-quality management. 1) In terms of cash flow, the company achieved a net cash flow of 530 million yuan from operating activities in 2023; 2) In terms of operating capacity, the company achieved a net operating cycle of 28 days in 2023, the lowest level since 2016; 3) In terms of profitability, the company's net return interest rate in 2023 was 7.88%, +0.62 pct compared to the previous year. The cost rate for the period continued to be optimized. The fee rate for the 2023 period was 21.74%, -2.68pct year on year. The continued improvement of important business indicators fully shows that the company's management capabilities are constantly improving, and that the construction and iteration of the company's own system is effective.
Improve the global sales network and have an overseas competitive advantage. Since 2005, the company has developed overseas market business. It has formed a channel cooperation network of about 6,000 companies in more than 140 countries and regions, and has established 7*24 hours a day, 7 days a week, professional service capabilities, forming Abbison's unique competitiveness in overseas markets. In October 2023, the Abison Dongjiang Intelligent Manufacturing Center was fully delivered and put into operation, enabling digital and intelligent management of the entire manufacturing process, once again laying a solid foundation for Abbison's global journey.
Profit forecast: We expect the company's net profit to be 403, 5.29, and 696 million yuan respectively in 2024-26, maintaining a “buy” rating.
Risk warning: LED market demand falls short of expectations, energy storage business expansion falls short of expectations, etc.