JONHON(SZ:002179) Guotai Junan Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Buy" with a target price of 57.97 CNY, maintaining the previous rating of "Buy" [1][2]. Core Views - The company is expected to benefit from the high growth prospects in the aerospace and defense sectors during the 14th Five-Year Plan, alongside continuous upgrades in product business structure and strategic synergies, leading to sustained high growth rates [1][2]. - The company's revenue for 2023 is projected to be 20.074 billion CNY, representing a 26.75% increase year-on-year, with a net profit attributable to shareholders of 3.339 billion CNY, up 23% [1][2]. Summary by Sections Financial Performance - The company achieved a revenue of 20.074 billion CNY in 2023, a 26.75% increase from the previous year, with a net profit of 3.339 billion CNY, reflecting a 23% growth [1][2]. - The gross profit margin for 2023 was 37.95%, an increase of 1.41 percentage points year-on-year [1]. - The company’s operating profit margin is projected to improve to 18.9% in 2024, with a net profit margin of 16.3% [2]. Business Strategy - The company is focusing on enhancing its R&D capabilities, with a research and development expense ratio of 10.95% in 2023, an increase of 0.86 percentage points [1]. - The company is expanding its international market presence and modernizing its production capacity, with significant progress in various projects [1][2]. Market Position - The company is recognized as a leading supplier of interconnection solutions in the defense sector, with ongoing expansion in markets such as data centers, oil equipment, and photovoltaic energy storage [1][2]. - The company aims to cover mainstream automotive manufacturers in the electric vehicle sector, focusing on becoming a top-tier player both domestically and internationally [1].