SACO(SZ:002025) Minsheng Securities·2024-03-29 16:00Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 37.86 CNY [1] Core Views - The company achieved a net profit of 750 million CNY in 2023, representing a year-on-year growth of 35.1%, which aligns with market expectations [1] - The company is focusing on emerging industries to enhance economic efficiency, with a projected revenue growth of 9.5% in 2024 [2] - The company is a core supplier of special connectors and is expanding its main business while accelerating its layout in commercial aerospace, data centers, and low-altitude economy sectors [1][2] Financial Performance Summary - In 2023, the company reported total revenue of 6.21 billion CNY, with a year-on-year increase of 3.2% [2] - The gross profit margin for 2023 increased to 38.0%, up 5.0 percentage points from the previous year [1] - The company expects to achieve net profits of 913 million CNY, 1.1 billion CNY, and 1.33 billion CNY for the years 2024, 2025, and 2026 respectively, with growth rates of 21.7%, 20.9%, and 20.2% [2] Business Segment Performance - The relay segment generated revenue of 330 million CNY, while the connector and interconnection integrated products segment saw revenue growth of 8.5% [1] - The company is actively increasing R&D investment, particularly in high-reliability optoelectronic interconnects, new energy, microwave components, and machine vision technology [1] Cash Flow and Financial Health - The operating cash flow improved significantly in 2023, with net cash flow from operating activities reported at 1.64 billion CNY [2] - The company has optimized its supply chain management, leading to a reduction in inventory by 55.9% compared to the beginning of the year [1]