Newsletter summary
The company's revenue in 2023 is 19.Pacmanplus.1.7 billion yuan, down 2.86% from the same period last year; revenue increased by 8.05% in the first quarter of 2024. Automotive electronics business is growing rapidly, R & D investment continues to maintain a high water level, and the global layout continues to advance. It is expected to maintain growth and maintain a "buy-A" rating from 2024 to 2026. Risks include demand, raw materials, exchange rate fluctuations and lower-than-expected business expansion.
Text of news flash
[the company's annual report and quarterly report show a substantial increase in the first quarter of 2024] the company recently released its 2023 annual report and the first quarterly report of 2024. For the whole year of 2023, the company's operating income was 1.917 billion yuan, down 2.86% from the same period last year; the net profit from home was 133 million yuan, down 25.35% from the same period last year; and the net profit from non-return was 103 million yuan, down 38.11% from the same period last year. In 2024, the company's first-quarter operating income was 451 million yuan, an increase of 8.05% over the same period last year; net profit was 31 million yuan, an increase of 40.07% over the same period last year; and non-return net profit was 30 million yuan, an increase of 807.11% over the same period last year. The rapid growth of automotive electronics business in the automotive electronics business, the company achieved revenue of 413 million yuan in 2023, an increase of 73.90% over the same period last year, accounting for 21.55%. In addition, revenue from communications, consumer, industrial control and medical services reached 264 million yuan, 104 million yuan, 776 million yuan and 312 million yuan respectively. In addition, revenue from communications and consumer products increased slightly compared with the same period last year, while revenue from industrial control and medical services decreased. Sales of communications / consumer products declined year-on-year, despite communications and consumer productsPacmanplusSales declined compared with the same period last year, but the company's overall revenue grew due to increased demand for high unit price products. Under the influence of factors such as overseas factory capacity climbing, new plant depreciation, software project amortization and overseas business expansion, the company's full-year net profit fell to 133 million yuan, gross profit margin and net profit margin dropped to 22.01% and 7.18%, respectively. The performance of the first quarter of 2024 significantly repaired in the first quarter of 2024. With the gradual end of the destocking of some customers and the increase in demand, coupled with the company's continued cost reduction and efficiency, the company achieved revenue of 451 million yuan, an increase of 8.05% over the same period last year, and a net profit of 31 million yuan, an increase of 40.07% over the same period last year. Gross profit margin and net profit margin increased to 23.97% and 7.07% respectively. R & D investment maintained a high level in 2023, the company's R & D expenditure was 116 million yuan, an increase of 10.37% over the same period last year, and the R & D expenditure rate was 6.04%. In the first quarter of 2024, R & D expenditure was 26 million yuan, down 11.23% from the same period last year, and the R & D expenditure rate was 5.71%. The company continues to promote process transformation, improve production efficiency and supply chain management capabilities, in order to enhance the competitiveness of the industry. The global layout acceleration company has been put into production in the first phase of the Suzhou Phase II plant and built an intelligent logistics system in accordance with the German Industrial 4.0 standard. Overseas, production lines have been put into production in Mexico, Vietnam and Romania. At the same time, the company has established investment and operating companies in Hong Kong and Singapore, and plans to set up local marketing teams in Europe and the United States in 2024. Investment advice: the company's income from 2024 to 2026 is expected to be 2.224 billion yuan, 2.663 billion yuan and 3.16 billion yuan respectively, and the net profit returned to its mother is 232 million yuan, 277 million yuan and 331 million yuan respectively. Give the company 17 times PE in 2024, corresponding to the target price of 24.53 yuan, and maintain the "buy-A" investment rating. Risks suggest that the risks faced by the company include lower-than-expected downstream demand, fluctuations in raw material prices, exchange rate fluctuations and lower-than-expected business expansion.
