SACO(SZ:002025) Orient Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 52.52 yuan, based on a projected EPS of 2.02 yuan for 2024 and a PE ratio of 26 times [2][4]. Core Insights - The company reported a revenue of 6.21 billion yuan for 2023, reflecting a year-on-year growth of 3.16%, and a net profit of 750 million yuan, which is a significant increase of 35.11% [1][3]. - The fourth quarter of 2023 saw a revenue decline of 23.37% to 1.007 billion yuan, attributed to lower revenue recognition, but the company expects a recovery in growth as industry demand rebounds [1][3]. - The net profit margin improved to 13.98%, with a notable increase in gross margin to 37.99%, driven by effective cost control measures including design optimization and procurement cost reductions [1][3]. - The company plans to achieve a revenue target of 6.5 billion yuan in 2024, with cost control measures aimed at keeping expenses below 5.48 billion yuan [1][3]. - The company is positioned to benefit from high demand in military products and has made significant breakthroughs in key markets, including aerospace and telecommunications, which are expected to enhance profitability [1][3]. Financial Summary - For 2023, the company achieved a revenue of 6.21 billion yuan, with a projected revenue growth of 16.8% for 2024 and 23.8% for 2025 [3][9]. - The net profit for 2024 is estimated at 922 million yuan, with a growth rate of 22.8% [3][9]. - The gross margin is expected to stabilize around 36.6% from 2024 to 2026, while the net profit margin is projected to reach 12.9% by 2026 [3][9].