Sunlord(SZ:002138) SINOLINK SECURITIES·2024-02-28 16:00Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits for 2024-2026 projected at 8.86 billion, 11.42 billion, and 14.21 billion RMB, reflecting growth rates of +38.39%, +28.81%, and +24.48% respectively [1][4]. Core Insights - The company reported a revenue of 5.04 billion RMB for 2023, an increase of 18.93% year-on-year, and a net profit of 641 million RMB, up 47.98% year-on-year. In Q4 alone, revenue reached 1.364 billion RMB, marking a 29.09% increase year-on-year [1]. - The company is experiencing sustained order demand and improving profitability, with Q4 revenue achieving a historical high and a gross margin of 36.96%, up 0.69 percentage points from the previous quarter [1]. - The company is diversifying its business into new areas such as consumer electronics, automotive electronics, and cloud computing, which are expected to drive future growth [1]. Summary by Sections Performance Overview - In 2023, the company achieved a revenue of 5,040 million RMB, with a growth rate of 18.93%. The net profit was 641 million RMB, reflecting a growth rate of 47.91% [4]. - Q4 performance showed a revenue of 1,364 million RMB, with a year-on-year increase of 29.09% and a quarter-on-quarter increase of 1.5% [1]. Business Analysis - The company has seen continuous growth in Q3 and Q4, with Q4 revenue and gross margin improvements attributed to increased orders in precision electronic components and enhanced operational efficiency [1]. - The company is optimistic about the sustainability of its traditional business and the growth potential of its emerging sectors, particularly in automotive electronics and photovoltaic products [1]. Profit Forecast and Valuation - The projected net profits for 2024, 2025, and 2026 are 8.86 billion, 11.42 billion, and 14.21 billion RMB, respectively, with corresponding P/E ratios of 24, 19, and 15 [1][4].