XJEC(SZ:000400) Guoxin Securities·2024-04-13 16:00Investment Rating - The investment rating for the company is "Buy" [5][12][15]. Core Views - The company has shown steady growth in its annual performance, with a revenue of 17.06 billion and a net profit of 1.01 billion in 2023, reflecting year-on-year increases of 13.51% and 28.03% respectively [6][11]. - The company plans to distribute a cash dividend of 300 million, which accounts for 30% of the net profit [6][11]. - The company is expected to enter a peak delivery period for its ultra-high voltage direct current (UHV DC) projects in 2024-2025, with significant orders already secured [11][12]. - The offshore wind power sector is anticipated to reach a turning point in 2024, with the company holding a leading market share of 50% in relevant projects [11][12]. - The acquisition of a 100% stake in a metering company has enhanced the company's capabilities in the electric meter business, with notable international market performance [11][12]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 170.61 billion, a year-on-year growth of 13.51%, and a net profit of 10.05 billion, up 28.03% year-on-year [6][11]. - The gross profit margin for the year was 18.00%, a decrease of 1.04 percentage points compared to the previous year [6][11]. - The fourth quarter of 2023 saw a revenue of 63.97 billion, representing an 8.17% year-on-year increase and a 70.20% increase in net profit [11][12]. Business Segments - The UHV DC business generated revenue of 7.16 billion in 2023, with a gross margin of 42.29% [11][12]. - The smart distribution and transformation business maintained steady performance, with revenue of 45.77 billion, a slight decline of 0.88% year-on-year [11][12]. - The company has secured significant international contracts, expanding its market presence in regions such as the Middle East, Europe, and South America [11][12]. Future Outlook - The company is expected to achieve net profits of 12.07 billion, 17.09 billion, and 21.42 billion for the years 2024 to 2026, with corresponding price-to-earnings ratios of 23, 16, and 13 [11][12]. - The anticipated launch of flexible UHV DC bidding in 2024 is expected to significantly increase the value of converter valve projects [11][12].