SDL(SZ:002658) Huachuang Securities·2024-03-28 16:00Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 9 yuan, while the current price is 6.94 yuan [4]. Core Insights - The company achieved a revenue of 1.51 billion yuan in 2023, representing a year-on-year growth of 0.37%. However, the net profit attributable to shareholders decreased by 28.51% to 203 million yuan. The company plans to distribute a cash dividend of 3.00 yuan per 10 shares [4][1]. - The revenue from the environmental monitoring system and industrial process analysis system was 1.21 billion yuan and 244 million yuan, respectively, showing a decline of 5.53% and an increase of 42.16% year-on-year [4]. - The company's gross margin decreased from 46.45% last year to 41.41% this year due to increased competition and weak market demand [4]. - The operating cash flow improved significantly, with a net cash flow from operating activities of 318 million yuan, a year-on-year increase of 54.96%, mainly due to improved customer payments [4]. - The company maintained a high dividend policy, with a total cash dividend of approximately 188 million yuan in 2023, resulting in a payout ratio of 92.49% [4]. Financial Summary - The company’s total assets amounted to 3.156 billion yuan, with a debt-to-asset ratio of 15.40% [6]. - The projected net profit for 2024, 2025, and 2026 is expected to be 231 million yuan, 277 million yuan, and 297 million yuan, respectively, with corresponding P/E ratios of 19, 16, and 15 [19]. - The company’s earnings per share (EPS) for 2023 is 0.32 yuan, projected to increase to 0.36 yuan in 2024 and 0.44 yuan in 2025 [19].