WEIXING(SZ:002003) EBSCN·2024-04-18 09:02Investment Rating - The report maintains a "Buy" rating for the company, expecting a return exceeding 15% over the next 6-12 months [10]. Core Insights - In 2023, the company achieved a revenue of 3.907 billion yuan, representing a year-on-year growth of 7.67%, and a net profit attributable to shareholders of 558 million yuan, with a growth of 14.21% [7][25]. - The company has shown resilience in performance despite challenges in downstream inventory adjustments and weak industry demand, with an increase in net profit margin by 0.82 percentage points to 14.29% [7][8]. - The company is focusing on major clients, enhancing customer satisfaction, and expanding its global strategy, which has led to steady growth in international business [8]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue is projected to grow from 3.907 billion yuan in 2023 to 4.524 billion yuan in 2024, with a growth rate of 15.81% [3]. - Net profit is expected to increase from 558 million yuan in 2023 to 671 million yuan in 2024, reflecting a growth rate of 20.20% [3]. - Earnings Per Share (EPS) is forecasted to rise from 0.48 yuan in 2023 to 0.57 yuan in 2024 [3]. - The company’s return on equity (ROE) is projected to improve from 12.83% in 2023 to 14.93% in 2024 [3]. Operational Metrics - The company’s gross margin improved by 1.91 percentage points to 40.92% in 2023, driven by changes in order structure and a decrease in raw material prices [7]. - The capacity utilization rate for 2023 was 66.81%, an increase of 3.51 percentage points year-on-year [7]. - The company plans to enhance its product offerings and expand production capacity, particularly in Vietnam, to strengthen its competitive edge [25].