VEICHI(SH:688698) Huachuang Securities·2024-04-16 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 31.75 yuan [2][6]. Core Insights - The company achieved a revenue growth of 44.03% year-on-year in 2023, reaching 1.305 billion yuan, and a net profit growth of 36.38%, amounting to 191 million yuan [2][3]. - The growth is attributed to strong sales in traditional businesses such as frequency converters and servo systems, alongside enhanced supply chain management and production automation, leading to a gross margin of 38.08%, up 2.20% year-on-year [1][2]. - The company is actively expanding its automation business and overseas markets, with overseas revenue reaching 314 million yuan, a 54.64% increase, accounting for 24.04% of total revenue [1][3]. Revenue and Profit Forecast - Revenue projections for 2024, 2025, and 2026 are estimated at 1.718 billion yuan, 2.213 billion yuan, and 2.788 billion yuan, respectively, with corresponding net profits of 268 million yuan, 362 million yuan, and 490 million yuan [3][6]. - Earnings per share (EPS) are forecasted to be 1.27 yuan, 1.72 yuan, and 2.33 yuan for the same years [3][6]. Product and Market Development - The company is focusing on emerging industries such as robotics, with significant investments in product development and technology breakthroughs [1][2]. - The product line has been expanded to include low-voltage servo systems and other core components, targeting various types of robots and enhancing market competitiveness [1][2]. Financial Metrics - The company reported a gross margin of 38.08% in 2023, with expectations for continued improvement in the coming years [3][6]. - The price-to-earnings (P/E) ratio is projected to decrease from 27 times in 2023 to 11 times by 2026, indicating a favorable valuation trend [3][6].