MILKYWAY(SH:603713)2024-04-15 16:00Investment Rating - The report maintains a "Outperform" rating for the company, indicating an expected total return exceeding 10% relative to the benchmark index over the next 12 months [5][13]. Core Insights - The company experienced a 15.8% year-on-year decline in total revenue for 2023, amounting to RMB 9.75 billion, primarily due to industry fluctuations and price declines. However, in Q1 2024, total revenue rebounded with a 23.3% year-on-year increase to RMB 2.9 billion, and net profit grew by 40.6% to RMB 150 million, suggesting a potential recovery in performance [2][12]. - The company is actively expanding its customer base and global footprint, targeting sectors such as new energy, new materials, smart manufacturing, semiconductor chips, daily chemicals, and pharmaceuticals. By the end of 2023, the number of effective customers exceeded 8,000, and the company is enhancing its supply chain services across the Asia-Pacific region while extending its reach into North America and Europe [3][12]. - The company is focusing on long-term strategies and improving service capabilities, with a goal of enhancing asset efficiency and quality. The gross profit margin improved from 10.9% in 2022 to 11.8% in 2023, driven by various business segments. Additionally, the company has reduced its combined sales, management, R&D, and financial expense ratios from 5.9% in 2023 to 4.6% in Q1 2024, which supports improved profitability [12][13]. Financial Summary - For FY 2023, the company reported a net profit of RMB 431 million, with projections for FY 2024 and FY 2025 indicating net profits of RMB 570 million and RMB 663 million, respectively. The projected revenue for FY 2024 is RMB 11.44 billion, with a growth rate of 32.1% [7][13]. - The company’s EBITDA for FY 2023 was RMB 850 million, with forecasts of RMB 1.08 billion for FY 2024 and RMB 1.27 billion for FY 2025, reflecting a recovery trajectory [7][12]. - The report highlights a projected PE ratio of 15 times for FY 2024, indicating a favorable valuation compared to historical performance [13].