JONHON(SZ:002179) Orient Securities·2024-03-18 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 38.64 CNY, based on a 21x PE ratio for 2024 [2][4]. Core Views - The company achieved a revenue of 20.074 billion CNY in 2023, representing a year-on-year growth of 26.75%, and a net profit of 3.339 billion CNY, up 22.86% [1][3]. - The fourth quarter of 2023 saw a revenue of 4.715 billion CNY, marking a 39.34% increase, with a net profit of 446 million CNY, a 2.92% rise [1]. - The company plans to achieve a revenue of 22.1 billion CNY in 2024, reflecting a growth of 10.09%, and a total profit of 4.11 billion CNY, also up 10.08% [1][2]. Financial Summary - Revenue for 2022 was 15.838 billion CNY, which increased to 20.074 billion CNY in 2023, with projected revenues of 24.012 billion CNY in 2024 and 29.269 billion CNY in 2025 [3][9]. - The net profit for 2022 was 2.718 billion CNY, rising to 3.339 billion CNY in 2023, with forecasts of 3.904 billion CNY in 2024 and 4.644 billion CNY in 2025 [3][9]. - The gross margin improved from 36.5% in 2022 to 38.0% in 2023, with projections of 37.2% in 2024 and 36.8% in 2025 [3][9]. - The net margin slightly decreased from 17.2% in 2022 to 16.6% in 2023, with expectations of 16.3% in 2024 and 15.9% in 2025 [3][9]. Capacity Expansion and Market Position - The company is actively expanding its production capacity, with fixed assets increasing by 38.74% to 4.473 billion CNY and construction in progress rising by 56.92% to 1.793 billion CNY by the end of 2023 [1][3]. - The company is a leader in military products, with a high market share and expected growth in military orders due to increased demand [1][3]. - The company is also focusing on emerging industries, including data centers, oil equipment, photovoltaic energy storage, and the electric vehicle sector, which are all experiencing rapid growth [1][3].