UNI-T(SH:688628) Southwest Securities·2024-04-21 05:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the next six months with expected stock performance exceeding the market index by over 20% [14][35]. Core Insights - The company reported significant growth in 2023, achieving revenue of 1.02 billion with a year-on-year increase of 14.4%, and a net profit of 160 million, up 37.5% year-on-year. In Q1 2024, revenue reached 280 million, reflecting a 19.4% increase, and net profit was 55 million, up 33.6% year-on-year [1][21]. - The company has successfully upgraded its product lines, particularly in testing instruments and professional instruments, which have driven stable revenue growth. The testing instruments segment alone generated 140 million in revenue, a 29% increase year-on-year, with a gross margin improvement of 11.7 percentage points to 40.9% [1][21]. - The company has optimized its product lines, increasing the proportion of mid-to-high-end products, which has significantly boosted gross and net profit margins. The overall gross margin for 2023 was 43.3%, up 7.1 percentage points year-on-year, and the net profit margin was 15.5%, an increase of 2.6 percentage points [1][21]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.02 billion and a net profit of 160 million, with respective growth rates of 14.4% and 37.5%. For Q1 2024, revenue was 280 million, up 19.4%, and net profit was 55 million, up 33.6% [1][21]. - The company forecasts net profits of 230 million, 290 million, and 360 million for 2024, 2025, and 2026, respectively, with an expected compound annual growth rate of 31% [1][21]. Product Development - The company has enhanced its product matrix, focusing on high-end and specialized instruments, which has led to increased competitiveness and profitability. The gross margin for main products improved from 34.9% to 46.4% from Q1 2022 to Q4 2023 [1][21]. - The testing instruments segment is expected to grow significantly, with projected sales growth rates of 32%, 30%, and 26% for 2024, 2025, and 2026, respectively [19][20]. Market Expansion - The company has successfully expanded its market presence both domestically and internationally, with domestic sales growing by 16% and international sales by 15% [1][21]. - The company is actively developing its sales team and market outreach, targeting various sectors including electronics, home appliances, and new energy, which is expected to drive future growth [1][21].