LXBY(002884) Guotou Securities·2024-04-10 16:00Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 22.14 CNY for the next six months [7][19]. Core Insights - The company reported a total revenue of 1.316 billion CNY in 2023, a decrease of 11.32% year-on-year, and a net profit of 384 million CNY, down 9.06% year-on-year, which aligns with expectations [2]. - The fourth quarter of 2023 saw a net profit of 104 million CNY, representing a year-on-year increase of 19.23% and a slight increase from the previous quarter [2]. - The company has a strong dividend policy, planning to distribute 10 CNY per 10 shares, resulting in a total cash dividend of 358 million CNY and a dividend payout ratio of 93.2% for 2023 [17][28]. Financial Performance - Revenue projections for 2024-2026 are estimated at 1.543 billion CNY, 1.765 billion CNY, and 2.004 billion CNY, with growth rates of 17.3%, 14.4%, and 13.6% respectively [7]. - Net profit forecasts for the same period are 441 million CNY, 495 million CNY, and 565 million CNY, with growth rates of 14.9%, 12.3%, and 14.1% respectively [7]. - The company has maintained a gross margin of 37.9% in 2023, an increase of 2.1 percentage points year-on-year, with specific margins for different product categories [33]. Market Dynamics - The company is actively expanding its domestic market for stainless steel and general pumps, with revenue growth of 24.83% and 10.47% respectively in these segments [4]. - Recent government policies aimed at promoting equipment upgrades in industrial sectors are expected to accelerate growth in the domestic stainless steel pump industry [4]. - The company is witnessing a gradual recovery in its plastic bathroom pump segment as overseas inventory is being consumed, leading to a narrowing decline in orders [29]. Stock Performance - The stock price has shown fluctuations, with a notable performance against the Shanghai and Shenzhen 300 index [5][19]. - The company has a market capitalization of approximately 7.293 billion CNY and a circulating market capitalization of about 5.567 billion CNY [19].