JJHB(603279)2024-03-23 16:00Investment Rating - The report gives a "Buy" rating for the company, indicating a potential upside of 38% based on a target market value of 16.2 billion yuan, compared to the current market value [191]. Core Insights - The company has a market share of 40% in the filter press industry and has been focusing on this sector for over 30 years, establishing itself as a leading manufacturer [19][71]. - The company has achieved a compound annual growth rate (CAGR) of 18% in revenue and 36% in net profit over the past four years, with a projected net profit of approximately 999 million yuan for 2023 [56][188]. - The company maintains a gross margin of around 30% and a net margin that has gradually increased to about 15% [11][60]. Summary by Sections 1. Company Overview - The company specializes in filter presses and has a significant market presence, with a 40% market share in China [19][71]. - It has been recognized as a "Manufacturing Industry Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology [19]. 2. Financial Performance - The company reported a revenue of 5.68 billion yuan in 2022, with a net profit of 834 million yuan, and expects a net profit of 999 million yuan in 2023 [56][188]. - The return on equity (ROE) reached 21% in 2022, with no interest-bearing debt, indicating strong financial health [11][60]. 3. Product and Market Dynamics - The company’s main products include filter presses and related components, with filter presses accounting for 84% of revenue [7][22]. - The company has a high self-manufacturing rate of 93% for its components, which contributes to its competitive pricing and product quality [29][30]. 4. Growth Opportunities - The company is expanding its product applications in various sectors, including environmental protection, mining, and new energy materials, with a focus on lithium battery applications [60][113]. - The company is also investing in complementary equipment, which is expected to enhance profitability significantly [57][138]. 5. Export Potential - The company has a strong export presence, with exports reaching 1.68 billion USD in 2023, benefiting from its high cost-performance ratio [182][183]. - The company aims to establish its brand as a globally recognized high-end filter equipment manufacturer [135]. 6. Future Projections - Revenue growth is projected at 19% for 2023, with expectations of continued growth in the complementary equipment segment [167][188]. - The company anticipates a replacement cycle for its components starting in 2024, which could further boost revenue [57][185].