ToLand(SZ:300855) Minsheng Securities·2024-04-21 01:30Investment Rating - The report maintains a "Recommended" rating for the company, considering its core position in the high-temperature alloy market and the potential for growth through industry chain extension [1][20]. Core Insights - The company reported a revenue of 1.38 billion yuan for 2023, representing a year-on-year increase of 34.1%. The net profit attributable to the parent company was 330 million yuan, up 29.6% year-on-year [1]. - In Q1 2024, the company achieved a revenue of 350 million yuan, a 5.7% increase year-on-year, with a net profit of 91 million yuan, reflecting an 8.8% year-on-year growth [1]. - The gross margin in Q1 2024 reached a peak of 38.9%, marking a 1.7 percentage point increase year-on-year, while the net margin improved by 0.7 percentage points to 26.0% [1]. Revenue and Profitability - The company has shown consistent revenue growth over two consecutive quarters, with Q4 2023 revenue at 320 million yuan, a 5.2% year-on-year increase [1]. - The gross margin for 2023 decreased by 0.7 percentage points to 34.3%, while the net margin decreased by 0.8 percentage points to 23.9% [1]. - The company’s product output increased by 26.0% year-on-year to 5,120 tons, with sales volume rising by 26.1% to 5,001 tons [1]. Product Segmentation - In 2023, revenue from cast high-temperature alloys was 620 million yuan, accounting for 45.1% of total revenue, with a gross margin of 45.6% [1]. - Revenue from deformed high-temperature alloys reached 440 million yuan, representing 31.8% of total revenue, with a gross margin of 24.5% [1]. - Special stainless steel generated 84 million yuan in revenue, while other alloy products contributed 180 million yuan, with the latter showing a 45.0% year-on-year increase [1]. Cost Management and Efficiency - The company has optimized its expense ratios, with the total expense ratio decreasing by 2.3 percentage points to 8.0% in 2023 [1]. - Research and development expense ratio fell to 4.0%, while management and sales expense ratios decreased to 3.3% and 0.7%, respectively [1]. - The company’s fixed assets increased by 71.1% year-on-year to 660 million yuan, primarily due to ongoing investments in automation production lines for aviation components [1]. Future Growth Potential - The company is actively extending its industry chain into the mid-to-downstream machining sector, which is expected to open up new growth opportunities [1]. - Forecasted net profits for 2024, 2025, and 2026 are 420 million yuan, 530 million yuan, and 690 million yuan, respectively, with corresponding price-to-earnings ratios of 22x, 17x, and 13x [1].