Kewell(SH:688551) SINOLINK SECURITIES·2024-04-14 16:00Investment Rating - The report maintains a "Buy" rating for the company [13][25]. Core Views - The company has demonstrated continuous performance with significant growth in both hydrogen energy and small power sectors, achieving a revenue of 529 million RMB in 2023, a year-on-year increase of 41% [13][25]. - The net profit attributable to the parent company reached 117 million RMB, reflecting a substantial year-on-year growth of 88.14%, surpassing previous forecasts [13][25]. - The company's gross margin improved to 53.87%, an increase of 3.05 percentage points year-on-year, driven by product upgrades and high R&D investment [13][25]. Summary by Relevant Sections Financial Performance - Revenue for 2023 is projected at 529 million RMB, with a growth rate of 41% [16]. - The net profit for 2023 is expected to be 117 million RMB, with a growth rate of 88.14% [16]. - The diluted earnings per share (EPS) for 2023 is estimated at 1.403 RMB [16]. Business Segments - Testing power segment revenue reached 361 million RMB, a year-on-year increase of 35.82%, driven by high demand in the new energy and electric vehicle sectors [13]. - Hydrogen energy segment revenue was 112 million RMB, up 35.97%, supported by favorable industry policies and increased demand for fuel cells and electrolyzers [13]. - Power semiconductor revenue surged to 53 million RMB, a remarkable growth of 134.32%, with recognition from leading international clients [13]. Profitability and Valuation - The company is expected to achieve net profits of 155 million RMB, 211 million RMB, and 284 million RMB for 2024, 2025, and 2026 respectively, with corresponding EPS of 1.84 RMB, 2.52 RMB, and 3.39 RMB [13][16]. - The price-to-earnings (P/E) ratio is projected to decrease from 62.93 in 2022 to 13.04 by 2026, indicating improved valuation as earnings grow [16].