Dongfang Electronics(SZ:000682) Guohai Securities·2024-04-22 18:30Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook for its stock performance relative to the market index [14][25][26]. Core Insights - The company is expected to benefit from the digitalization trends in the power industry, with significant growth in its smart distribution and energy storage businesses [28][30]. - The company achieved a revenue of 24 billion yuan in Q4 2023, reflecting a quarter-on-quarter increase of 51% and a year-on-year increase of 21% [1]. - The company's net profit attributable to shareholders for Q4 2023 was 2.0 billion yuan, with a net profit margin of 11.3% [1][22]. Financial Performance - In 2023, the company reported total revenue of 65 billion yuan, a year-on-year increase of 19%, and a net profit of 5.4 billion yuan, up 23% from the previous year [22]. - The gross margin for 2023 was 33.7%, showing a year-on-year improvement of 1.6 percentage points [22]. - The company forecasts revenues of 76 billion yuan, 90 billion yuan, and 107 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 6.8 billion yuan, 8.4 billion yuan, and 10.3 billion yuan [25][29]. Market Expansion - The company is actively expanding its presence in international markets, having secured projects in countries such as Saudi Arabia, Uzbekistan, and Zambia [30]. - The domestic market is also expected to grow, supported by government initiatives aimed at enhancing the quality of distribution networks [30]. Growth Drivers - The smart distribution segment contributed significantly to revenue, accounting for 57% of total revenue in 2023 [23]. - The company is well-positioned to leverage the increasing investments in digital grid construction, with the State Grid expected to invest over 500 billion yuan in 2024 [28].