Investment Rating - The report maintains a "Buy" rating for the company and raises the target price to HKD 7.88, indicating a potential upside of 46% from the current price of HKD 5.40 [2][10]. Core Insights - The company achieved a revenue of RMB 7.252 billion in 2023, a year-on-year increase of 24%, with a net profit of RMB 521 million, reflecting a significant growth of 61% compared to the previous year [5][8]. - The company plans to increase capital expenditures to approximately RMB 670 million in 2024, focusing on expanding its AMI business in Mexico and Hungary [5][8]. - The backlog of orders stood at RMB 7.9 billion at the end of 2023, a 30% increase from the end of 2022, with 80% expected to be delivered within a year [6][9]. - The company anticipates continued high growth in overseas markets, particularly in Mexico, with expected revenue growth of over 30% in 2024 [6][9]. - The company's net profit margin improved to 10.5% in 2023, and return on equity (ROE) increased to 14.7%, indicating enhanced profitability [10]. Financial Summary - In 2023, the company reported earnings per share (EPS) of 52.7 cents and a dividend of HKD 0.28, with a payout ratio of approximately 49% [5][8]. - Revenue projections for the next few years are as follows: RMB 9.561 billion in 2024, RMB 12.214 billion in 2025, and RMB 15.325 billion in 2026, with corresponding net profit estimates of RMB 699 million, RMB 949 million, and RMB 1.225 billion respectively [7][13]. - The company’s price-to-earnings (PE) ratio at the current price is 14.9, with projections of 9.3 for 2024 and 6.9 for 2025, indicating a favorable valuation [10][13].
在手订单充裕，业绩增长势头向好