Tianrun Industry(002283) 广发证券·2024-03-25 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.93 CNY per share, while the current price is 5.42 CNY [4]. Core Insights - The company benefited from the recovery of the domestic industry and international expansion, achieving a revenue of 4.006 billion CNY in 2023, a year-on-year increase of 27.74%, and a net profit attributable to shareholders of 391 million CNY, up 91.96% [3][22]. - The gross margin for 2023 was 24.91%, an increase of 3.74 percentage points year-on-year, attributed to improved capacity utilization and efficiency from automation upgrades [3][16]. - The company plans to distribute a cash dividend of 2.30 CNY per 10 shares, which represents 66.62% of the net profit attributable to shareholders [27]. Revenue and Profit Analysis - The company's revenue from engine and marine crankshafts reached 2.451 billion CNY, a 27.02% increase year-on-year, while connecting rods generated 911 million CNY, up 24.03% [12]. - The company has become the largest domestic producer of commercial vehicle crankshafts and connecting rods, with a market share of 60% in heavy-duty engine crankshafts and 42% in diesel light-duty engine crankshafts [30]. Financial Projections - The earnings per share (EPS) for 2024-2026 are projected to be 0.47, 0.56, and 0.67 CNY, respectively, with a maintained reasonable value of 8.93 CNY per share [21]. - The company expects a revenue growth rate of 14.1% in 2024, 16.9% in 2025, and 18.0% in 2026 [8]. Cost and Expense Management - The company reported a sales expense ratio of 2.06%, a management expense ratio of 4.71%, a research and development expense ratio of 6.79%, and a financial expense ratio of -0.07% for 2023 [43]. - The increase in R&D expenses is primarily due to the development of new technologies and materials [43].