ConST(SZ:300445) Southwest Securities·2024-04-06 16:00Investment Rating - The report assigns a "Buy" rating for the company with a target price of 21.96 yuan over the next six months [1][12]. Core Insights - The company achieved a revenue of 498 million yuan in 2023, representing a year-on-year growth of 20.36%, and a net profit of 102 million yuan, up 35.05% year-on-year [1]. - The fourth quarter of 2023 saw a revenue of 167 million yuan, a year-on-year increase of 35.97%, and a net profit of 32 million yuan, which is a significant year-on-year growth of 158.21% [1]. - The company has shown a strong improvement in profitability, with a gross margin of 64.45% in 2023, up 0.96 percentage points year-on-year [2]. Summary by Sections Financial Performance - In 2023, the company's comprehensive gross margin was 64.45%, with a net profit margin of 20.35%, an increase of 2.03 percentage points year-on-year [2][74]. - The revenue from calibration testing products was 468 million yuan, a growth of 19.9% year-on-year, with digital pressure detection products contributing 361 million yuan, up 21.8% [11][78]. Business Segments - The revenue from digital pressure detection products was 361 million yuan, with a gross margin of 73.19%, while temperature and humidity detection products generated 78.03 million yuan with a gross margin of 55.78% [11][78]. - The company is expanding its sensor business, having developed high-precision pressure sensors with performance metrics of 0.01% F.S [27]. Profitability Forecast - The company is expected to maintain a compound annual growth rate (CAGR) of 30% in net profit over the next three years, with projected net profits of 129 million yuan, 177 million yuan, and 228 million yuan for 2024, 2025, and 2026 respectively [12][82]. - The report anticipates that the gross margin for digital pressure detection products will remain high, projected at 73.2% in 2024, increasing to 74.0% by 2026 [64].