业绩逊于预期，子公司有一定拖累

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 24.85 CNY per share, indicating an expected performance that exceeds the market by more than 10% over the next 12 months [3][16]. Core Insights - The company's performance in 2023 was slightly below expectations, with a revenue of 1.211 billion CNY, a year-on-year increase of 8.09%, and a net profit attributable to shareholders of 251 million CNY, a year-on-year increase of 1.45%. The fourth quarter saw a revenue of 283 million CNY, down 6.97% year-on-year, and a net profit of 47 million CNY, down 30.47% year-on-year [1][7]. - Subsidiaries have caused some drag on overall performance, with the annual gross margin at 37.37%, up 0.90 percentage points year-on-year, and a net profit margin of 20.59%, down 1.34 percentage points year-on-year. Losses from subsidiaries, such as Zhejiang Mingde and Liyuan Jinhai, amounted to 5.39 million CNY and 17.31 million CNY respectively [1][7]. - The company is expected to see significant contributions from new capacity in 2024, with successful completion of projects aimed at increasing production capacity and efficiency, including a new resin sand casting production line and ongoing construction of high-precision mechanical component production facilities [1][7]. - Profit forecasts suggest net profits for 2024-2026 will be 300 million CNY, 379 million CNY, and 477 million CNY respectively, with corresponding EPS of 1.24 CNY, 1.57 CNY, and 1.98 CNY per share. The company is projected to enter a rapid growth phase due to capital expenditures and acquisitions [1][7]. Financial Summary - For 2023, the company reported a revenue of 1.211 billion CNY, with a growth rate of 8.1%. Projections for 2024 indicate a revenue increase to 1.507 billion CNY, representing a growth rate of 24.4% [7]. - The EBITDA for 2023 was 371 million CNY, with forecasts of 438 million CNY for 2024, indicating a growth trajectory [7]. - The company's net profit for 2023 was 251 million CNY, with expected growth to 300 million CNY in 2024, reflecting a growth rate of 19.3% [7]. - The report highlights a projected PE ratio of 20 times for 2024, suggesting a valuation of 24.85 CNY per share based on comparable company analysis [1][7].