Haitong Securities·2024-03-26 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a significant revenue increase of 22.2% year-on-year for 2023, reaching 213.96 billion yuan, with a net profit growth of 83.8% to 9.01 billion yuan [6][7] - The company continues to lead in various market segments, with engine sales increasing by 28% and gearbox sales by 42% in 2023 [6] - The natural gas heavy truck business is experiencing rapid growth, with a market share increase to 65% [6][7] - The company is expected to achieve revenue of approximately 224.7 billion to 235.4 billion yuan in 2024, representing a growth of 5% to 10% [6] Financial Performance Summary - Revenue for 2023 was 213.96 billion yuan, with a year-on-year growth of 22.2% [8] - Net profit for 2023 was 9.01 billion yuan, reflecting an 83.8% increase year-on-year [8] - The gross profit margin for 2023 was 21.1%, up by 3.3 percentage points from the previous year [6][8] - The return on equity (ROE) improved to 11.4%, an increase of 4.7 percentage points year-on-year [6][8] Sales and Market Position - The company sold 736,000 engines in 2023, a 28% increase year-on-year, and 838,000 gearboxes, a 42% increase [6] - The sales of heavy truck engines reached 306,000 units, a remarkable 96% increase year-on-year [6][7] - The M series large-bore high-power density engines achieved significant sales growth, with over 8,100 units sold, marking a 38% increase [6] Future Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 234 billion, 251 billion, and 269 billion yuan respectively [7][9] - The expected net profit for 2024 is projected to be 11.4 billion yuan, with a corresponding EPS of 1.30 yuan [7][9] - The company is anticipated to maintain a price-to-earnings (P/E) ratio of 15-16 times for 2024, indicating a reasonable value range of 19.55 to 20.86 yuan per share [7]