Willfar(SH:688100) Guoxin Securities·2024-02-29 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][2]. Core Views - The company achieved a revenue of 2.225 billion yuan in 2023, representing a year-on-year growth of 11.1%, and a net profit of 525 million yuan, up 31.3% year-on-year. In Q4 alone, revenue reached 563 million yuan, with a significant net profit increase of 54.3% year-on-year [2]. - The company has a robust order backlog of 3.483 billion yuan, which is a 38.4% increase year-on-year, supporting future growth [2]. - The chip business is rapidly growing, enhancing profitability. The overall gross margin improved to 40.6%, up 3.7 percentage points year-on-year, with a net margin of 23.6%, an increase of 3.6 percentage points [2]. - The company is well-positioned to benefit from the domestic new power system construction and ongoing overseas market expansion, with established channels in Asia, Africa, and the Americas [2]. - A "Quality Improvement and Efficiency Enhancement" action plan has been announced, including a cash dividend of 4.3 yuan per 10 shares for 2023, a 30% increase year-on-year, and a proposed dividend payout ratio of 40% for 2024 [2]. Financial Forecasts - The company is expected to achieve net profits of 684 million yuan, 841 million yuan, and 1.010 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 25, 20, and 17 times [2][45]. - Revenue projections for 2024-2026 are 2.946 billion yuan, 3.703 billion yuan, and 4.433 billion yuan, reflecting growth rates of 32.4%, 25.7%, and 19.7% respectively [2][14]. - The gross margin is expected to remain stable at around 40.7% for 2024, 40.3% for 2025, and 40.1% for 2026 [14][27]. Business Segmentation - The revenue from the perception layer is projected to be 642.4 million yuan in 2024, with a growth rate of 29.5% [27]. - The network layer is expected to generate revenue of 929.5 million yuan in 2024, with a growth rate of 28.5% [27]. - The application layer is forecasted to achieve revenue of 171.3 million yuan in 2024, with a growth rate of 15.5% [27].