The company released financial results for 23&24Q1. In 2023, the company achieved revenue of 14.647 billion yuan, 6.94% year-on-year, and net profit of 977 million yuan, or 1.64% year-on-year. Among them, 23Q4 achieved revenue of 3.892 billion yuan, or 30.66% year on year, realized net profit of 241 million yuan, realized net profit of 105.07% year on year, 24Q1 realized revenue of 3.474 billion yuan, 22.79% year on year, and net profit to mother of 173 million yuan, or 24.74% year on year. The company pays a dividend of 4 yuan for every 10 shares, with a dividend rate of 33.49%.
Export sales continued to be booming, and domestic sales showed an improving trend. On the revenue side, the company's export sales for the full year of '23 were 10.8 billion yuan, up 11% year on year, and domestic sales were 3.84 billion yuan, down 3.2% year on year. Looking at a single quarter, according to our estimates, the company's export sales increased 50% + in 23Q4, domestic sales increased 1% year on year, 24Q1 export sales increased 30%, and domestic sales increased 7%. Export sales continued to grow rapidly for several quarters, and domestic sales showed an improving trend.
Profitability fluctuated due to fluctuations in the RMB exchange rate and hedging. The company's annual profit margin was 6.7%, slightly lower than in '22 (7.0% net profit margin for the full year of '22). Among them, the company's exchange earnings in '23 decreased by about 160 million yuan compared to '22, and hedging losses increased by 0.5 billion yuan compared to '22. Looking at a single quarter, the net profit margin for 23Q4 companies was 6.2%. Compared with 22Q4, the year-on-year increase was 2.3 pp, and the 24Q1 net profit margin increased 0.08pp to 5.0% year-on-year.
Investment advice. The company's export sales have achieved restorative growth, and the boom continues. At the same time, the company relies on R&D and manufacturing advantages, domestic sales brands continue to incubate, and the company's domestic sales can be expected to develop. We expect the company to achieve net profit of 1.1 billion yuan, 1,192 billion yuan, and 1,289 billion yuan in 24-26, giving the company 18-20 times PE valuation in 2024, corresponding to a reasonable value range of 24.12-26.8 yuan, maintaining a “superior to the market” rating.
Risk warning. External demand falls short of expectations, and domestic brands compete fiercely.