HUALU-HENGSHENG(SH:600426) INDUSTRIAL SECURITIES·2024-03-31 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [6][12]. Core Views - The company reported a revenue of 27.26 billion yuan in 2023, a year-on-year decline of 9.87%, and a net profit attributable to shareholders of 3.576 billion yuan, down 43.14% year-on-year [7][8]. - In Q4 2023, the company achieved a revenue of 7.914 billion yuan, representing a year-on-year increase of 9.36% and a quarter-on-quarter increase of 13.26% [7][8]. - The company is focusing on cost reduction and efficiency improvement, with ongoing projects expected to enhance its market competitiveness [11][12]. Financial Summary - Revenue: - 2023: 27,260 million yuan - 2024E: 34,541 million yuan (26.7% YoY growth) - 2025E: 39,131 million yuan (13.3% YoY growth) - 2026E: 43,715 million yuan (11.7% YoY growth) [3] - Net Profit: - 2023: 3,576 million yuan - 2024E: 4,545 million yuan (27.1% YoY growth) - 2025E: 5,714 million yuan (25.7% YoY growth) - 2026E: 6,258 million yuan (9.5% YoY growth) [3] - Gross Margin: - 2023: 20.9% - 2024E: 21.2% - 2025E: 22.6% - 2026E: 22.0% [3] - Earnings Per Share (EPS): - 2023: 1.68 yuan - 2024E: 2.14 yuan - 2025E: 2.69 yuan - 2026E: 2.95 yuan [3][12] Company Developments - The company plans to distribute a cash dividend of 6.00 yuan per 10 shares to all shareholders [4]. - The first phase of the Jingzhou base has been put into operation, contributing to revenue growth in Q4 2023, despite overall weak product demand [8][11]. - Ongoing projects at the Jingzhou and Dezhou bases are expected to support future growth, with significant investments planned for new materials and high-end products [11][12].