Neway CNC(SH:688697)2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company [3][10]. Core Views - The company reported a revenue of 2.321 billion yuan for 2023, a year-on-year increase of 25.76%, and a net profit of 318 million yuan, up 21.13% year-on-year, which is in line with expectations [3][10]. - The company experienced a significant increase in overseas revenue, which doubled to 705 million yuan, contributing positively to profitability despite domestic market challenges [10]. - The report anticipates a decline in profit forecasts for 2024-2025 due to overall industry demand being below expectations, with revised net profit estimates of 373 million yuan for 2024 and 442 million yuan for 2025 [10][21]. Financial Summary - For 2023, the company achieved a gross margin of 26.46%, a decrease of 1.03 percentage points year-on-year, primarily due to domestic price competition [10]. - The company’s earnings per share (EPS) for 2023 was 0.97 yuan, with projections of 1.14 yuan for 2024 and 1.35 yuan for 2025 [21][22]. - The projected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 17, 14, and 12 respectively, compared to industry averages of 22 and 18 for the same years [10][21].