Baimtec Material (SH:688563) Minsheng Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for future performance [2][3]. Core Views - The company achieved a revenue of 2.8 billion yuan in 2023, representing a year-on-year growth of 20.0%, with a net profit attributable to shareholders of 580 million yuan, up 30.2% year-on-year [2]. - The growth in performance is attributed to the sustained demand in the aviation market and a significant increase in customer orders [2]. - The report highlights a decrease in gross margin due to tax reform impacts, while reduced impairment losses and optimized expenses contributed to an increase in net profit margin [2]. - The company’s R&D investment remains high, with R&D expenses increasing by 9.0% to 200 million yuan, reflecting a commitment to maintaining long-term competitiveness [2]. Financial Performance Summary - In Q4 2023, the company reported a revenue of 610 million yuan, a year-on-year increase of 18.2%, and a net profit of 73 million yuan, up 82.4% year-on-year [2]. - The gross margin for 2023 decreased by 2.2 percentage points to 31.6%, while the net profit margin increased by 1.6 percentage points to 20.6% [2]. - Revenue from basic materials reached 1.32 billion yuan, growing by 19.8%, while revenue from aviation finished products was 1.24 billion yuan, up 23.9% [2]. - Domestic revenue was 2.58 billion yuan, a year-on-year increase of 18.7%, while overseas revenue grew by 31.8% to 190 million yuan [2]. Future Earnings Forecast - The company is projected to achieve net profits of 730 million yuan, 910 million yuan, and 1.07 billion yuan for the years 2024, 2025, and 2026, respectively [2]. - The current stock price corresponds to price-to-earnings ratios of 33x, 26x, and 23x for the years 2024, 2025, and 2026 [3][7].