occurrences
The company released its report for the first quarter of 2024:2024Q1's revenue was 1,412 billion yuan, up 21.88% year on year, down 36.32% month on month; contributed 62 million yuan, up 48.45% year on year, turning loss into profit; withholding 51 million yuan from mother, up 53.18% year on year, turning loss into profit from month to month.
Report highlights:
2024Q1 Company Profitability Improvements
2024Q1's gross margin/net margin was 19.92%/6.75%, respectively, up 1.52/1.67pct year-on-year.
The 2024Q1 company's cost ratio for the period was 11.20%, down 1.01 pct year on year. Among them, sales expense rate/management expense rate/R&D expense rate/financial expense ratio were 1.58%/6.05%/2.82%/0.75%, respectively, 0.05/0.29/-0.26/ -1.08pct year on year.
Based on high-end equipment, the company's business is moving towards the global market
In 2023, the company's overseas business revenue was 4.963 billion yuan, up 145.08% year on year, accounting for 69.10% of overseas revenue, up 29.96 pcts year on year. By business: 1) In the material handling equipment sector, in 2023, the company completed the acquisition of the global bulk handling business of Thyssenkrupp (Thyssenkrupp) and Sandvik (Sandvik) under the FLSmidth Group through its holding subsidiary Koch in Germany, including all ongoing global after-sales service orders for this business. 2) In the offshore industry, in 2023, the subsidiary Runbang Marine delivered nearly 130,000 tons of seabreeze foundation pile and conduit rack products, and achieved the export of seabreeze foundation piles to Japanese customers. The company actively develops high-end equipment business for the global market, and has room for growth.
Investment advice and profit forecasting
We expect the company's net profit to be 3.54/4.38/571 million yuan in 2024-2026, an increase of 540%/24%/30% year-on-year; the current stock price corresponds to PE 13.9/11.2/8.6 times, maintaining the “increase” rating.
Risk warning
Raw material price fluctuation risk, increased risk of market competition, risk of order delivery falling short of expectations, risk of new customer expansion falling short of expectations, risk of international trade policy risk, and risk of exchange rate fluctuations.