NHPM(601882) Orient Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 31.97 CNY based on a 23x average P/E ratio for comparable companies in 2024 [2][3]. Core Insights - The company achieved record high revenue and profit in 2023, demonstrating resilience and growth potential as an industry leader. In Q4 2023, the company reported revenue of 816 million CNY, a year-on-year increase of 0.7% and a quarter-on-quarter increase of 0.5%. The net profit attributable to the parent company was 146 million CNY, up 11.5% year-on-year and 2.6% quarter-on-quarter, marking the second-highest quarterly performance in history [1]. - The overall gross margin for the company improved to 29.94% in 2023, an increase of 2.63 percentage points year-on-year, while the net margin reached 18.34%, up 1.95 percentage points year-on-year. The company’s CNC machining centers showed significant gross margin improvements, indicating strong product competitiveness even during industry downturns [1]. - The overseas business segment saw substantial growth, with revenue reaching 594 million CNY in 2023, a year-on-year increase of 76%. This segment now accounts for 17.9% of total revenue, up 7.3 percentage points year-on-year, and has a gross margin of 39.29%, significantly higher than the domestic business margin of 27.91% [1]. Financial Summary - In 2023, the company reported total revenue of 3.32 billion CNY, a year-on-year growth of 4.6%, and a net profit of 609 million CNY, reflecting a 17.1% increase year-on-year. The earnings per share (EPS) for 2023 was 1.17 CNY, with projections for 2024 and 2025 set at 1.39 CNY and 1.62 CNY respectively [19][21]. - The company’s financial metrics indicate a gross margin of 29.9% and a net margin of 18.3% for 2023, with expectations for continued improvement in profitability in the coming years [19][21].