WEDGE(SZ:000534) Minsheng Securities·2024-03-30 16:00Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company has achieved a revenue of 980 million yuan in 2023, representing a year-on-year increase of 23.6%, and a net profit attributable to shareholders of 180 million yuan, up 73.6% year-on-year [2][3]. - The company is entering a production phase for multiple products, with a strong pipeline of 123 new products under development, ensuring long-term growth potential [2]. - The pharmaceutical segment is steadily growing, with high-temperature alloy revenue increasing by 52% [2]. - The company has optimized its expense ratio while increasing R&D investment, with R&D expenses rising by 38.7% to 110 million yuan [2]. - The company is positioned as a leader in the micro-ecological live bacteria sector in China and has developed significant capabilities in high-temperature alloys and components [2]. Financial Performance Summary - In Q4 2023, the company achieved a revenue of 250 million yuan, a year-on-year increase of 19.7%, and a net profit of 54 million yuan, up 782.3% year-on-year [2]. - The gross margin for 2023 decreased by 2.6 percentage points to 74.2%, while the net margin increased by 5.9 percentage points to 19.2% [2]. - The company expects to achieve net profits of 270 million, 360 million, and 460 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 23x, 18x, and 14x [2].