Changjiang Securities·2024-04-01 16:00Investment Rating - The investment rating for the company is "Buy" and is maintained [5][8]. Core Views - The company reported a steady growth in its railway equipment business, with revenue increasing by 18.05% year-on-year. The total revenue for 2023 reached 234.26 billion yuan, a 5.08% increase compared to the previous year [6][7]. - The overseas market continues to expand, with a 13.75% year-on-year increase in revenue from international operations. New overseas orders also rose by 15% [6][7]. - The demand for rail transit equipment is expected to rise, driven by upcoming tenders for high-speed trains and ongoing needs for equipment upgrades and maintenance [7][8]. Summary by Sections Financial Performance - In 2023, the company achieved a net profit attributable to shareholders of 11.71 billion yuan, a slight increase of 0.50% year-on-year. The non-recurring net profit was 9.11 billion yuan, up by 14.24% [6][7]. - The fourth quarter of 2023 saw total revenue of 91.23 billion yuan, a 4.41% increase year-on-year, while the net profit for the quarter was 5.56 billion yuan, down by 1.18% [6][7]. Railway Equipment Business - The railway equipment segment generated revenue of 98.2 billion yuan in 2023, with significant contributions from the high-speed train and passenger car sectors [7]. - The breakdown of revenue includes 41.8 billion yuan from high-speed trains, 9.7 billion yuan from passenger cars, 28 billion yuan from locomotives, and 18.7 billion yuan from freight cars [7]. Overseas Market Expansion - The company recorded overseas revenue of 27.73 billion yuan, marking a 13.75% increase. New overseas orders totaled 58.4 billion yuan, representing a 15% growth [7]. - Notable achievements include the first export of passenger diesel multiple units to the UAE and a lifecycle project agreement with Singapore's Land Transport Authority [7]. New Industry Business - Revenue from new industry sectors reached 80.6 billion yuan, a 4.56% increase, primarily driven by sales of energy storage devices and general components [7]. - The company is focusing on emerging industries such as wind power equipment and new materials, with successful shipments of large offshore wind turbine generators [7]. Future Outlook - The demand for high-speed trains is expected to increase, with a projected rise in passenger traffic leading to more tenders for new trains in 2024 [7]. - Equipment upgrade and maintenance needs are anticipated to remain stable due to the large existing stock of high-speed and urban rail equipment [7].