Changgao NEET(SZ:002452)2024-06-20 10:02Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [3]. Core Views - The company is expanding its production capabilities by investing in a new GIL production workshop, which will enhance its ability to develop and produce GIL products with voltage levels ranging from 220kV to 1000kV [1]. - The company's performance has shown rapid recovery, with a significant increase in profitability. In 2023, the company achieved a revenue of 1.4938 billion yuan, a year-on-year growth of 22.12%, and a net profit attributable to shareholders of 173.08 million yuan, up 198.15% year-on-year [1]. - The company has a positive outlook for the next three years, with projected revenues of 1.830 billion yuan, 2.395 billion yuan, and 2.755 billion yuan for 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 22.53%, 30.88%, and 15.04% [4]. Financial Summary - In 2023, the company reported a comprehensive gross margin of 34.44%, which improved by 3.15 percentage points year-on-year. The gross margin for Q1 2024 was 35.33%, an increase of 7.85 percentage points year-on-year [1]. - The company’s revenue breakdown for 2023 includes 725 million yuan from combination electrical equipment, 353 million yuan from isolating switches, and 386 million yuan from complete equipment [1]. - The company has made provisions for goodwill impairment amounting to 25.95 million yuan in 2023, with remaining goodwill of 65.41 million yuan from two well-performing subsidiaries, indicating no risk of goodwill impairment [2]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.49 yuan, 0.62 yuan, and 0.72 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 15, 12, and 11 [4][5].