Changgao NEET(SZ:002452) Huachuang Securities·2024-03-27 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company [1][15]. Core Views - The company has significantly improved its performance in 2023, with a notable recovery in revenue and profit levels. The overall gross margin reached 34.44%, an increase of 3.15 percentage points year-on-year. The operating cash flow turned positive at 253 million yuan, up 11.2% year-on-year, and the debt-to-asset ratio decreased to 30.23%, down 5.15 percentage points year-on-year [1][14]. - The company has released further impairment risks in 2023, with total asset impairment losses of 44 million yuan and credit impairment losses of 12 million yuan. The goodwill impairment for a subsidiary has been fully accounted for, eliminating further impairment risks [2][14]. Financial Summary - The company achieved a revenue of 1.493 billion yuan in 2023, a year-on-year increase of 22.12%, and a net profit attributable to shareholders of 173 million yuan, up 198.57% year-on-year. The net profit excluding non-recurring items reached 156 million yuan, a 266.79% increase year-on-year [14][16]. - The main subsidiaries contributed to revenue as follows: Longgao High Voltage Switch (353 million yuan), Longgao Electric (725 million yuan), Longgao Senyuan (208 million yuan), and Longgao Complete Equipment (178 million yuan), with respective year-on-year growth rates of -2.1%, +42%, +2.4%, and +29.5% [14]. - The company has made significant breakthroughs in its 500kV combination electrical equipment, marking its first successful bid for 3.72 million yuan and a subsequent bid of 53.265 million yuan in a major project [14][15]. Financial Projections - The company is projected to achieve net profits of 310 million yuan, 379 million yuan, and 455 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding earnings per share (EPS) of 0.50 yuan, 0.61 yuan, and 0.73 yuan [15][16].