Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance was impacted by a decline in neodymium iron boron prices, but its core technology provides strong competitiveness and resilience [3] - Future recovery in electric vehicles and wind power, along with potential demand from robotics, positions the company as a leading beneficiary in the industry [3] - Despite short-term cost disturbances, the company's growth trend remains intact [3] Financial Performance - 2023 revenue was RMB 6.69 billion, a year-on-year decrease of 6.7% [3] - Net profit attributable to shareholders was RMB 564 million, a year-on-year decrease of 19.8% [3] - Q4 net profit attributable to shareholders was RMB 70 million, a year-on-year increase of 338%, but a quarter-on-quarter decrease of 57% [3] - Q4 production of magnetic materials was approximately 4,200 tons, a year-on-year increase of 27%, but a quarter-on-quarter decrease of 3% [3] - Q4 operating costs and various expenses totaled RMB 1.56 billion, a quarter-on-quarter increase of 8% (approximately RMB 110 million) [3] Technological and Operational Highlights - The company's grain boundary diffusion technology is leading in the industry, with 85% of products utilizing this technology in 2023 [3] - The company has strong partnerships with leading clients across various downstream sectors, ensuring robust order and performance capabilities [3] - New projects in Baotou, Ganzhou, and Ningbo are expected to gradually commence production in 2024, contributing to future performance growth [3] - The company has shifted its focus from a waste magnet recycling project in Mexico to a new project producing 1 million sets of magnetic components annually, aiming to enhance added value and benefit from overseas demand in new energy vehicles and humanoid robots [3] Market and Industry Outlook - Wind power: With single consumption at a low level, demand recovery is expected as wind power installations increase [3] - Electric vehicles: The trend towards multiple motors is expected to increase the use of magnetic materials per vehicle [3] - Humanoid robots: The value of magnetic components per robot is high, and with expected order increases in 2024-2025, the company's performance is likely to see significant growth [3] Financial Summary - 2023 revenue: RMB 6,688 million, a year-on-year decrease of 7% [4] - 2023 net profit: RMB 564 million, a year-on-year decrease of 20% [4] - 2023 PE ratio: 16.3 [4] - 2023 PB ratio: 1.3 [4] Market Data - Current stock price: HKD 6.85 [5] - 52-week price range: HKD 6.48-23.00 [6] - Current market capitalization: HKD 9,212 million [6]
港股点评：Q4费用端拖累业绩，成长仍可期待