NJTC(SH:601975) Huachuang Securities·2024-03-27 16:00Investment Rating - The report maintains a "Recommend" rating for the company, with a target price of 4.59 CNY, indicating a potential upside of 41% from the current price of 3.26 CNY [20][21]. Core Views - The company achieved a net profit of 1.56 billion CNY in 2023, representing an 8.6% year-on-year increase, which aligns with expectations. The outlook for the product oil tanker market remains positive [20]. - The report highlights that the international product oil market experienced a high-to-low trend throughout 2023, with average TCE for MR TC7 at 26,212 USD/day, down from 34,370 USD/day in 2022 [20]. - The company’s revenue for 2023 was 6.20 billion CNY, a slight decrease of 1.1% year-on-year, with Q4 revenue at 1.55 billion CNY, down 17.4% year-on-year [20]. - The gross margin for 2023 was 32.8%, an increase of 2.8 percentage points year-on-year, while the net profit margin was 25.1%, up 2.2 percentage points year-on-year [20]. Financial Summary - The company’s main revenue (in million CNY) for 2023 was 6,197, with a projected increase to 7,131 in 2024, reflecting a year-on-year growth rate of 15.1% [7]. - The net profit attributable to the parent company for 2023 was 1,557 million CNY, with projections of 2,203 million CNY for 2024, indicating a growth rate of 41.5% [7]. - The earnings per share (EPS) for 2023 was 0.32 CNY, expected to rise to 0.46 CNY in 2024 [7]. - The company’s total assets for 2023 were 11,648 million CNY, with a projected increase to 14,917 million CNY in 2024 [16]. Operational Insights - The company operates a fleet of 68 vessels with a total deadweight tonnage of 2.52 million, of which 30% are energy-efficient ships [20]. - The report notes that the demand for oil transportation is supported by geopolitical factors in Europe and the Middle East, with global product oil trade volume increasing by 3.0% in 2023 [20]. - The supply side shows a recovery in new orders for product oil tanker construction, but the current order book only represents 6.9% of the existing fleet capacity, indicating a historically low level [20].