DFDR(SZ:300217) SINOLINK SECURITIES·2024-04-23 02:30Investment Rating - The report assigns an "Increase" rating to the company, indicating an expected price increase of 5% to 15% over the next 6 to 12 months [1][11]. Core Views - The company is positioned as a pioneer in the domestic substitution of pre-plated nickel steel, with expectations for explosive growth in this business segment. The electric heater-related business is also expanding steadily [11]. - The company's net profit for 2023 is projected to be 644 million RMB, with earnings per share (EPS) of 0.433 RMB, reflecting a significant increase from the previous year [11]. - The report highlights a strong performance in the automotive PTC and new energy equipment sectors, with revenue growth driven by increasing demand for new energy vehicles and ongoing project releases [22]. Summary by Relevant Sections Financial Performance - In 2023, the company reported revenue of 4.106 billion RMB, a year-on-year increase of 7.5%, and a net profit of 644 million RMB, up 113% year-on-year. The fourth quarter saw a revenue decline of 24.6% year-on-year [13][22]. - The company’s gross margin improved to 23.6% in 2023, up 3.4 percentage points from the previous year, driven by an improved product mix [22]. Revenue Breakdown - Revenue from various segments in 2023 included: - Home PTC: 1.267 billion RMB (down 3.0%) - Automotive PTC: 297 million RMB (up 22.6%) - New energy equipment: 1.963 billion RMB (up 34.6%) - Optical communication materials: 500 million RMB (down 30.8%) - Lithium battery steel shell: 44 million RMB (down 22.6%) [22]. Profitability Metrics - The report projects the company's net profit for 2024 to be 431 million RMB, with an EPS of 0.292 RMB, and a PE ratio of 16.36 [15]. - The return on equity (ROE) is expected to be 10.00% in 2024, reflecting a strong profitability outlook [15]. Market Position - The company is recognized for its leading position in the pre-plated nickel steel market, with expectations for significant growth as it continues to optimize its product structure and expand its customer base [11][22].