Huangma Technology(SH:603181) Orient Securities·2024-04-22 09:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 11.76 CNY, reflecting a 20% premium over comparable companies' valuation [1][15]. Core Insights - The company's EPS forecasts for 2024 and 2025 have been adjusted to 0.70 CNY and 0.89 CNY, respectively, with an additional forecast for 2026 at 1.07 CNY [1]. - The company experienced a revenue decline of 13.2% in 2023, primarily due to exiting a major product line, but small product sales increased by 10% [33]. - A recovery trend is established, with quarterly net profits showing a sequential increase from Q1 to Q4 in 2023, driven by small product sales growth [33]. - The company is expected to enter a new growth phase as it capitalizes on lower overseas energy costs and domestic production initiatives [33]. Financial Summary - Revenue (in million CNY): - 2022: 2,182 - 2023: 1,894 - 2024E: 2,261 - 2025E: 2,752 - 2026E: 3,302 - Net Profit (in million CNY): - 2022: 477 - 2023: 325 - 2024E: 414 - 2025E: 527 - 2026E: 630 - EPS (CNY): - 2022: 0.81 - 2023: 0.55 - 2024E: 0.70 - 2025E: 0.89 - 2026E: 1.07 - Gross Margin (%) is projected to improve from 23.4% in 2022 to 27.0% in 2025 and 2026 [2][33].