Incident: In 2023, the company achieved revenue of 30.420 billion yuan, a year-on-year increase of 32.21%; realized net profit to mother of 4.742 billion yuan, an increase of 9.77% over the previous year. In the first quarter of 2024, the company achieved revenue of 6.492 billion yuan, an increase of 35.78% over the previous year; realized net profit of 811 million yuan, an increase of 8.56% over the previous year; and realized net profit of 792 million yuan after deduction, an increase of 26.67% over the previous year.
Profitability has declined due to the increase in the share of new energy vehicles, and the quality of operations is still consolidated and steady. In 2023, the company's gross margin was 33.55%, down 1.46 percentage points year on year; net profit margin was 15.70%, down 3.10 percentage points year on year. In the first quarter of 2024, the company's gross margin was 34.63%, down 1.88pct year on year; net margin was 12.68%, down 3.05 pct year on year. The company's profitability declined slightly due to factors such as an increase in the share of the NEV business. In 2023, the company's receivables turnover ratio was 4.00 times, down 0.26 times year on year; inventory turnover ratio was 3.4 times, up 0.34 times year on year; net cash flow from operating activities was 3.37 billion yuan, up 5.28% year on year. The company's cash flow situation continues to improve, and the quality of operations is consolidated and steady.
The general automation business is growing steadily, and the NEV business continues to grow rapidly. In 2023, the company's general automation business achieved revenue of 15.038 billion yuan, an increase of 24.17% over the previous year; of these, the general inverter/general servo system/PLC & HMI/industrial robot business revenue was 52/60/16/800 million yuan respectively. NEV & rail transit revenue was 99.20 billion yuan, up 78.69% year on year, accounting for 32.61% of revenue, accounting for an increase of 8.48 pct year over year. Mainly due to SOP volume of designated models from NEV passenger vehicle customers and company delivery guarantees, the NEV commercial vehicle business achieved mass sales on the new platform.
The market share continues to rise, and the company's alpha attributes continue to stand out. 2023: ① General automation field: The company's general servo system has a market share of 28.2% in the domestic market, first in the industry; low-voltage inverter products (including special inverters for elevators) have a market share of 17.0%, ranking second, domestic brands first; small PLC products have a domestic market share of about 15.3%, ranking second, and domestic brands first. ② In the field of new energy vehicles: The domestic market share of the company's new energy passenger vehicle motor controller products is about 10.2%, ranking second, ranking first among third-party suppliers. ③ Industrial robot field: The company's domestic market share of industrial robots is 6.5%, ranking fourth; of these, SCARA robots share 20.8%, ranking first.
Investment advice: The company's operating performance remains steady, its market share continues to increase, and the leading alpha attribute is prominent. We expect the company's net profit to be 54.65/68.22/8.265 billion yuan in 2024-2026, respectively, and the corresponding PE is 29.04/23.27/19.20 times, respectively. Maintain the company's “gain” rating.
Risk warning: macroeconomic recovery falls short of expectations, downstream demand continues to weaken, market competition intensifies, raw material prices fluctuate sharply, etc.