ShaanGu(SH:601369) ZHONGTAI SECURITIES·2024-04-19 01:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the next 6 to 12 months compared to the benchmark index [7][24]. Core Insights - In 2023, the company reported a revenue of 10.143 billion yuan, a year-on-year decrease of 5.79%, while the net profit attributable to shareholders increased by 5.36% to 1.020 billion yuan. The fourth quarter showed significant growth with a revenue increase of 23.97% and a net profit increase of 89.62% [10][19]. - The company is diversifying its business beyond the metallurgical sector, with revenue from this sector decreasing from 71.60% in 2021 to 45.85% in 2023, indicating a successful expansion into other fields such as energy and pharmaceuticals [19]. - The company has demonstrated strong cash flow management, with a net cash flow from operating activities of 1.352 billion yuan in 2023, indicating robust operational quality and strong bargaining power within the supply chain [19]. Financial Performance Summary - Revenue Forecast: - 2022A: 10,766 million yuan - 2023A: 10,143 million yuan (down 6% YoY) - 2024E: 11,133 million yuan (up 10% YoY) - 2025E: 12,447 million yuan (up 12% YoY) - 2026E: 13,842 million yuan (up 11% YoY) [2] - Net Profit Forecast: - 2022A: 968 million yuan - 2023A: 1,020 million yuan (up 5% YoY) - 2024E: 1,167 million yuan (up 14% YoY) - 2025E: 1,367 million yuan (up 17% YoY) - 2026E: 1,522 million yuan (up 11% YoY) [2] - Earnings Per Share (EPS): - 2022A: 0.56 yuan - 2023A: 0.59 yuan - 2024E: 0.68 yuan - 2025E: 0.79 yuan - 2026E: 0.88 yuan [2] - Profitability Ratios: - Gross Margin: 21.49% in 2023 (down 0.55 percentage points YoY) - Net Margin: 10.83% in 2023 (up 1.05 percentage points YoY) [19] Market Expansion and Opportunities - The company is advancing in the compressed air energy storage sector, having developed systems for 10MW to 350MW scale compressors and winning multiple project bids, indicating a strong market presence [26]. - The company is actively pursuing international markets, achieving significant breakthroughs in Europe and other regions, which is expected to enhance its market share and revenue potential [26].