HXG(SH:603112)2024-03-17 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [6][11]. Core Views - The company's performance in 2023 is in line with expectations, with significant growth anticipated in its three main business segments: compressor parts, engineering machinery parts, and automotive parts. The expected net profit for 2023 is projected to be between 382 million and 408 million yuan, representing a year-on-year growth of 45% to 55% [11]. - The company is expected to benefit from a high level of production in the downstream home appliance sector, particularly in air conditioning, with production and sales figures showing substantial year-on-year increases [17]. Financial Summary - The total revenue for 2023 is estimated at 3.263 billion yuan, with a year-on-year growth rate of 1.2%. The net profit attributable to the parent company is projected at 404 million yuan, reflecting a growth of 53.2% [19]. - The earnings per share (EPS) for 2023 is expected to be 0.92 yuan, with a projected increase to 1.15 yuan in 2024 and 1.38 yuan in 2025 [19]. - The gross margin for 2023 is anticipated to be 24.0%, with a gradual increase to 24.3% by 2025 [19]. Business Outlook - The company is expected to see stable growth in its compressor parts business, with a saturated order book and high capacity utilization anticipated for Q1 2024 [17]. - The automotive parts business is also projected to grow, supported by a favorable production and sales environment in the automotive sector, with expectations of increased business scale due to new capacity coming online [17]. - The engineering machinery segment is improving as the company continues to expand its customer base, particularly in Europe, America, and Japan [17].