Willfar(SH:688100) Huajin Securities·2024-02-28 16:00Investment Rating - The report maintains an "Accumulate-B" rating for the company [2][6]. Core Views - The company achieved a revenue of 2.225 billion yuan in 2023, representing a year-on-year growth of 11.06%, and a net profit of 525 million yuan, which is a 31.26% increase compared to the previous year [2][6]. - The company has a strong order backlog of 3.483 billion yuan, reflecting a year-on-year growth of 38.4% [2]. - The company is positioned well in three major markets: digital power grid, smart city, and overseas markets, which are expected to drive future growth [2][6]. - The company plans to distribute a cash dividend of 4.3 yuan per 10 shares, with a total payout of 210 million yuan, marking a 30% increase in cash dividends year-on-year [5][6]. Financial Performance - In 2023, the company reported a gross margin of 40.79%, an increase of 3.67 percentage points year-on-year, and a net profit margin of 23.60%, up by 3.63 percentage points [2]. - The company’s operating cash flow reached 417 million yuan in 2023, a year-on-year increase of 62.21% [2]. - The compound annual growth rate (CAGR) for revenue since the company went public is 15.65%, and for net profit, it is 24.68% [2]. Future Projections - The company is projected to achieve revenues of 2.911 billion yuan, 3.647 billion yuan, and 4.457 billion yuan for the years 2024, 2025, and 2026, respectively, with year-on-year growth rates of 30.8%, 25.3%, and 22.2% [6][8]. - The net profit for the same years is expected to be 663 million yuan, 802 million yuan, and 958 million yuan, with growth rates of 26.3%, 20.9%, and 19.4% [6][8]. Market Positioning - The company has established a strong presence in the digital power grid sector, with significant contracts won in 2023, and is actively expanding its overseas market presence [2][6]. - The company is focusing on R&D in three major areas, with a 10.22% increase in R&D expenses in 2023, amounting to 227 million yuan [2][6].