ZMD(SH:688636) Minsheng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company achieved a revenue of 660 million yuan in 2023, representing a year-on-year growth of 22.6%, and a net profit attributable to shareholders of 96 million yuan, up 27.7% year-on-year [1]. - The revenue growth is attributed to continuous market expansion and increased order volume [1]. - The company has a rich project reserve, with expectations of multiple important models being delivered in the next five years, projecting a cumulative delivery amount of 5.1 billion yuan [1]. - The company is a leading private enterprise in the special embedded computer industry, focusing on areas such as airborne and missile-borne systems, and has strengthened R&D investments in emerging fields like drones and commercial satellites [1]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 260 million yuan, a year-on-year increase of 35.1%, and a net profit of 30 million yuan, up 12.6% year-on-year [1]. - The overall gross margin for 2023 decreased by 8.39 percentage points to 43.6%, while the net margin increased by 0.58 percentage points to 14.5% [1]. - The company’s R&D expenses for 2023 were 120 million yuan, a year-on-year increase of 8%, with a focus on enhancing R&D capabilities [1]. Order and Project Pipeline - As of the end of 2023, the company had an order backlog of 406 million yuan, a decrease of 15.4% year-on-year [1]. - The company has maintained a high R&D expense ratio of around 20% from 2021 to 2023, indicating a strong commitment to innovation [1]. Future Outlook - The projected net profits for 2024, 2025, and 2026 are estimated at 136 million yuan, 181 million yuan, and 242 million yuan respectively, with corresponding price-to-earnings ratios of 23x, 17x, and 13x [1].