CBGF(SZ:002478) Minsheng Securities·2024-03-30 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][73]. Core Views - The company achieved a revenue of 6.661 billion yuan in 2023, a year-on-year increase of 7%, and a net profit attributable to shareholders of 783 million yuan, a significant year-on-year increase of 66.2% [1][10]. - The company is benefiting from the recovery in the oil and gas industry, with continuous release of new production capacity and a decline in raw material prices, which is expected to enhance sales volume and gross margin of steel pipe products [2][73]. - The company plans to build a new production line for precision tubes for electric vehicles, with an estimated annual revenue of 525 million yuan and a post-tax IRR of 11.65% [2][26]. Summary by Sections 1. Event Overview - In 2023, the company reported a revenue of 6.661 billion yuan, a 7% increase year-on-year, and a net profit of 783 million yuan, up 66.2% year-on-year. In Q4 2023, revenue was 1.546 billion yuan, down 10.9% year-on-year and 6.7% quarter-on-quarter [1][10]. 2. Production and Sales Growth - The company’s seamless pipe production reached 760,000 tons in 2023, a 2.41% increase year-on-year, while sales volume reached 787,800 tons, an 11.83% increase year-on-year, marking a historical high in production and sales scale [2][42]. - The gross margin for 2023 improved to 18.76%, an increase of 3.78 percentage points year-on-year, despite a 12.21% decrease in seamless steel pipe prices [2][15]. 3. Market Demand and Capacity Release - The demand for oil and gas pipeline and thermal power boiler pipes remains strong, with the company actively expanding its overseas market presence [2][51]. - The company has introduced advanced production capacity with the world's first PQF continuous rolling mill, significantly enhancing its production capabilities [2][71]. 4. Financial Forecast and Investment Suggestions - The company’s net profit is projected to be 710 million yuan in 2024, 799 million yuan in 2025, and 825 million yuan in 2026, with corresponding PE ratios of 8x, 7x, and 7x based on the closing price on March 29 [2][73].