ZMJ(SH:601717) Haitong Securities·2024-04-06 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [3][6]. Core Views - The company's net profit attributable to shareholders increased by 29% year-on-year in 2023, with a quarterly growth of 21% in Q4 [6]. - The coal machinery segment achieved record highs in various metrics, with revenue and net profit reaching 18.85 billion and 3.19 billion yuan respectively, reflecting year-on-year increases of 12.5% and 25.3% [6]. - The automotive parts segment is undergoing a transformation towards new energy, with a notable increase in revenue from new energy vehicle components [6]. - The company is progressing with the spin-off of Hengda Intelligent Control to the Sci-Tech Innovation Board, which is expected to enhance focus on coal mining equipment manufacturing and automotive parts [6]. - Long-term growth prospects are promising, with projected net profits for 2024-2026 expected to be 3.73 billion, 4.31 billion, and 4.94 billion yuan respectively [6][10]. Financial Summary - In 2023, the company achieved total revenue of 36.423 billion yuan, a year-on-year increase of 13.7% [7]. - The gross profit margin is expected to improve from 22.1% in 2023 to 25.0% by 2026 [10]. - The earnings per share (EPS) are projected to grow from 1.83 yuan in 2023 to 2.76 yuan in 2026 [10]. - The company’s total assets are forecasted to increase from 49.174 billion yuan in 2023 to 64.206 billion yuan in 2026 [11]. Segment Performance - The coal machinery segment is expected to generate revenue of 12.178 billion yuan in 2024, with a year-on-year growth of 22.15% [8]. - The automotive parts segment is projected to recover with revenue of 15.286 billion yuan in 2024, reflecting a growth of 14.94% [8]. - The material trading segment is expected to decline, with revenue forecasted at 2.895 billion yuan in 2024, a decrease of 14.10% [8]. Valuation - The company is valued at a price-to-earnings (P/E) ratio of 9 to 10 times for 2024, suggesting a reasonable value range of 18.81 to 20.9 yuan per share [6][9].