BAOTI(SH:600456) Minsheng Securities·2024-03-30 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 27.63 yuan [12]. Core Views - The company achieved a revenue of 6.927 billion yuan in 2023, a year-on-year increase of 4.41%, while the net profit attributable to shareholders decreased by 2.29% to 544 million yuan [1][2]. - The decline in military demand has negatively impacted performance, but the export business has seen rapid growth, particularly in the aerospace and 3C sectors [3][11]. - The company is gradually increasing production capacity, with actual titanium processing capacity reaching 32,942 tons in 2023, and plans to reach 50,000 tons during the 14th Five-Year Plan [3]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 1.316 billion yuan, a quarter-on-quarter decrease of 30.82% and a year-on-year decrease of 14.31% [1]. - The gross profit margin for 2023 was 21.18%, down 0.46 percentage points year-on-year, with a significant drop in Q4 to 15.63% [3]. - The company recorded an asset impairment loss of 86.86 million yuan in 2023, primarily due to inventory and contract performance cost impairments [3]. Production and Capacity - The company produced approximately 30,013 tons of titanium products in 2023, a decrease of 7.76% year-on-year, with sales of about 29,380 tons, down 7.05% [3]. - High-end titanium material projects are gradually coming online, with expected annual increases in production of various titanium products [3]. Future Outlook - The company forecasts revenue growth rates of 5.9% in 2024, 11.1% in 2025, and 11.3% in 2026, with net profit projections of 583 million yuan, 712 million yuan, and 842 million yuan respectively [2][3]. - The report highlights the potential for growth in the 3C sector, where the company is positioned to benefit as a major supplier of titanium materials [3].