AECC AEC(SZ:000738) Minsheng Securities·2024-03-26 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Views - The company achieved a revenue of 5.32 billion yuan in 2023, representing a year-on-year increase of 7.7%. The net profit attributable to shareholders was 730 million yuan, up 5.55% year-on-year, while the net profit excluding non-recurring items reached 690 million yuan, reflecting a 14.4% increase [2]. - In Q4 2023, the net profit excluding non-recurring items grew by 51% year-on-year, although the overall net profit for the quarter decreased by 10.85% due to reduced investment income [2]. - The company benefits from a dual boom in the domestic "two-machine" market and overseas markets, with all four subsidiaries showing balanced development [2]. - The company has optimized its expense ratio, which decreased by 1.25 percentage points to 10.95% in 2023, indicating improved operational efficiency [2]. - The company has set a revenue target of 5.6 billion yuan for 2024, which represents a 5.2% increase compared to 2023 [2]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of 5.32 billion yuan, with a growth rate of 7.7%. The net profit attributable to shareholders was 730 million yuan, with a growth rate of 5.55% [3]. - The company’s gross margin for 2023 was 27.5%, a decrease of 0.3 percentage points year-on-year, while the net margin was 13.7%, also down by 0.3 percentage points [2][3]. - The investment income for 2023 was only 7.96 million yuan, a significant drop from 74.56 million yuan in 2022, impacting the net profit margin [2]. Product and Market Analysis - The "two-machine" control system products generated revenue of 4.69 billion yuan, accounting for 86.3% of total revenue, with a year-on-year growth of 10.1% [2]. - International cooperation business revenue reached 350 million yuan, up 47% year-on-year, while control system technology derivative products saw a decline in revenue by 36.1% [2]. Subsidiary Performance - The four subsidiaries reported positive revenue growth in 2023: - Xikong Technology: 2.33 billion yuan, up 8.7% - Guizhou Honglin: 1.69 billion yuan, up 2.1% - Beijing Hangke: 860 million yuan, up 12.8% - Changchun Control: 370 million yuan, up 6.0% [2]. Future Outlook - The company expects to continue benefiting from the stable growth of downstream production and the aftermarket, with adjusted net profit forecasts for 2024-2026 being 880 million, 1.01 billion, and 1.18 billion yuan, respectively [2].