ZMJ(SH:601717) Zhongyuan Securities·2024-04-06 16:00Investment Rating - The report upgrades the investment rating of the company to "Buy" [2][8]. Core Views - The company's coal machinery business continues to grow steadily, while the automotive parts segment is recovering in profitability [3][4]. - The company achieved total operating revenue of 36.423 billion yuan in 2023, representing a year-on-year increase of 13.67%, and a net profit attributable to shareholders of 3.274 billion yuan, up 28.99% year-on-year [2][8]. - The coal machinery segment generated revenue of 18.854 billion yuan, a year-on-year increase of 12.51%, with a net profit of 3.052 billion yuan, up 21.48% [2][8]. - The automotive parts segment reported revenue of 17.565 billion yuan, a year-on-year increase of 14.94%, but net profit decreased by 26.64% [2][8]. Summary by Sections Financial Performance - The company reported a gross margin of 22.05% and a net margin of 9.53% for 2023, both showing improvements from the previous year [2][3]. - Quarterly revenue for 2023 was 9.216 billion, 9.007 billion, 9.038 billion, and 9.076 billion yuan, with respective year-on-year growth rates of 13.83%, 21.03%, 9.54%, and 11% [2][3]. - The company’s earnings per share (EPS) for 2023 was 1.83 yuan, with projected EPS of 2.21 yuan for 2024 [8][19]. Business Segments - The coal machinery business is a leader in the hydraulic support industry and is benefiting from the ongoing push for intelligent mining solutions [4][5]. - The automotive parts segment is recovering, with significant growth in revenue from new energy vehicle components, which saw over 100% year-on-year growth [6][7]. - The company is expected to benefit from the ongoing modernization of coal mining equipment and the increasing demand for intelligent mining solutions [4][5]. Market Outlook - The report forecasts that the company will achieve operating revenues of 40.652 billion, 44.587 billion, and 48.059 billion yuan for 2024, 2025, and 2026, respectively [8][19]. - The net profit is projected to reach 4.147 billion, 4.689 billion, and 4.959 billion yuan for the same years [8][19]. - The automotive parts segment is anticipated to become a significant contributor to the company's overall performance, alongside the coal machinery business [6][8].