UNI-T(SH:688628) Guotai Junan Securities·2024-04-21 05:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 55.16 CNY, reflecting a 28x PE for 2024 [2][4]. Core Insights - The company's 2023 performance met expectations, with rapid growth in testing instruments and steady growth in traditional instruments, indicating a potential for continued improvement in profitability [2]. - The revenue for 2023 reached 1.02 billion CNY, a year-on-year increase of 14.44%, while net profit attributable to shareholders was 161 million CNY, up 37.46% [2]. - The report highlights a significant increase in the sales of mid-to-high-end products, contributing to an improvement in gross margin, which reached 43.32% in 2023, up 7.06 percentage points year-on-year [2]. Financial Summary - Revenue projections for 2024-2026 are set at 1.20 billion CNY, 1.40 billion CNY, and 1.62 billion CNY, respectively, with expected growth rates of 18%, 17%, and 16% [3]. - The operating profit (EBIT) is forecasted to grow significantly, reaching 239 million CNY in 2024, with a margin of 20% [3]. - The net profit attributable to shareholders is projected to be 219 million CNY in 2024, reflecting a growth rate of 35% [3]. - The report indicates an increase in earnings per share (EPS) from 1.46 CNY in 2023 to 1.97 CNY in 2024 [3]. Product Performance - Testing instruments generated 135 million CNY in revenue in 2023, marking a 28.98% increase, driven by new product development and a low base effect [2]. - General instruments achieved revenue of 609 million CNY, growing by 13.70%, while specialized instruments saw a 26.16% increase to 53 million CNY [2]. - Temperature and environmental testing instruments maintained stable growth with revenue of 220 million CNY, up 10.62% [2]. Profitability Metrics - The company's gross margin and net margin for 2023 were reported at 43.32% and 15.52%, respectively, indicating a positive trend in profitability [2]. - The return on equity (ROE) is expected to rise to 16.9% in 2024, reflecting improved efficiency in generating profits from equity [3].