Azure(SZ:002245) Haitong Securities·2024-04-08 16:00Investment Rating - The report assigns an "Outperform" rating to the company, indicating an expectation of better performance compared to the market index [13][18]. Core Insights - The company's performance in 2023 was under pressure, primarily due to a decline in lithium battery sales, but a recovery in demand is anticipated in 2024 [3][16][20]. - The LED business turned profitable in 2023, with revenue growth and improved gross margins, while the metal logistics business maintained good operational performance [4][29]. - The company is actively pursuing global expansion and exploring new application scenarios for its products, which may enhance future growth prospects [17][20]. Financial Summary - In 2023, the company reported total revenue of 52.22 billion yuan, a decrease of 16.92% year-on-year, and a net profit of 1.41 billion yuan, down 62.78% year-on-year [16][21]. - The gross margin for 2023 was 12.80%, reflecting a decline of 3.04 percentage points compared to the previous year [16][21]. - Revenue projections for 2024-2026 are optimistic, with expected revenues of 62.97 billion yuan, 69.45 billion yuan, and 78.71 billion yuan, respectively, indicating a recovery trend [21][23]. Business Segment Performance - Lithium battery revenue in 2023 was 1.638 billion yuan, down 35.93% year-on-year, with a gross margin of 8.43% [3][21]. - The LED business generated approximately 1.240 billion yuan in revenue, up 10.04% year-on-year, with a gross margin of 13.11% [4][21]. - The metal logistics segment achieved revenue of 2.302 billion yuan, a decline of 11.39% year-on-year, but maintained a stable gross margin of 15.53% [4][29]. Future Outlook - The company expects a gradual recovery in lithium battery demand, with projected sales of 3.80 billion units in 2024, increasing to 5.00 billion units by 2026 [20][21]. - Gross margins for the lithium battery segment are anticipated to improve to 13.00%, 15.00%, and 18.00% over the next three years [20][21]. - The report suggests a valuation range of 8.72 to 10.47 yuan per share based on a price-to-earnings ratio of 25-30 times for 2024 [18][22].