Sinocat(SH:688737) Guotai Junan Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company [10][25]. Core Views - The company achieved a revenue of 1.544 billion yuan in 2023, representing a year-on-year growth of 245%, with a net profit of 42.32 million yuan, indicating a turnaround to profitability [14][25]. - The growth in revenue is primarily driven by the increased demand for natural gas heavy-duty trucks, leading to higher sales of exhaust catalysts [14][21]. - The company is actively advancing its hydrogen fuel cell technology, with successful project completions that enhance production capabilities [16][23]. Financial Summary - Revenue Forecast: The company forecasts revenues of 1.967 billion yuan for 2024 and 2.756 billion yuan for 2026, with corresponding EPS of 1.10 yuan and 1.65 yuan respectively [8][25]. - Profitability Metrics: The gross margin improved to 11.91% in 2023, with a significant reduction in expense ratios [22]. - Market Position: The company is positioned as a key player in the exhaust catalyst market for various vehicle types, including natural gas and diesel vehicles [14][21]. Industry Insights - The demand for hydrogen fuel cell vehicles is expected to rise significantly during the "14th Five-Year Plan," leading to increased demand for high-performance catalysts [16]. - The company is enhancing its production capabilities with a new intelligent manufacturing facility, which is expected to improve operational efficiency and scale [22].