Azure(SZ:002245) Soochow Securities·2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" [12][19]. Core Views - The company's 2023 revenue was 5.22 billion, a decrease of 16.92% year-on-year, with a net profit attributable to shareholders of 140.82 million, down 62.78% year-on-year. The fourth quarter of 2023 saw a revenue of 1.5 billion, an increase of 34% quarter-on-quarter [19]. - The company is actively expanding into emerging fields such as eVTOL and AI robotics, aiming to explore potential applications [11]. - The logistics segment for metals has shown stable growth, contributing 150 million in profit for 2023, with expectations for continued profit growth in 2024 [2]. - The LED segment is expected to achieve profitability in 2024, with a projected contribution of nearly 10 million in Q4 2023 [2]. Summary by Sections Financial Performance - The total revenue for 2023 was 5.22 billion, with a year-on-year decline of 16.92%. The net profit attributable to shareholders was 140.82 million, down 62.78% year-on-year. The gross margin for 2023 was 12.8%, a decrease of 3 percentage points [10][19]. - For 2024, the expected revenue is 6.396 billion, with a projected net profit of 327.16 million, reflecting a year-on-year increase of 132.33% [12][10]. Production and Sales - The company shipped 220 million lithium batteries in 2023, with an expected 30% quarter-on-quarter increase in Q4 shipments [11]. - The target for 2024 is to ship 400 million batteries, representing a year-on-year growth of over 80% [11]. Cash Flow and Capital Expenditure - The operating cash flow for 2023 was 551 million, an increase of 16.2% year-on-year. The company reduced capital expenditures significantly by 55% to 360 million [20][16]. Market Position and Strategy - The company maintains a competitive edge in the 3C market and is expanding its market share in high-growth sectors such as new energy vehicles and 5G communications [2]. - The company is focusing on improving its profitability through strategic investments in emerging technologies and sectors [11].