Investment Rating - The report maintains a "Recommended" rating for the company, with expected net profits for 2024-2026 at 1.13 billion, 1.44 billion, and 1.82 billion respectively, corresponding to PE ratios of 19, 15, and 12 based on the stock price as of April 22 [1][10]. Core Views - The company has shown strong revenue growth, achieving 1.085 billion in revenue for 2023, a year-on-year increase of 24.42%. However, net profit growth was modest at 3.15%, with a decline in non-recurring net profit by 4.49% [1]. - The production and sales volume of high-temperature alloys increased, with production reaching 5,731.03 tons (up 30.34%) and sales at 6,027.55 tons (up 13.68%) in 2023. The proportion of high-end corrosion-resistant alloy materials has also risen to 42.9%, an increase of 6.17% [1]. - The company faced challenges with high raw material costs, leading to a decline in gross margin to approximately 17.35% in 2023, down 2.63 percentage points year-on-year. The average prices for nickel and cobalt also decreased significantly [1]. - The subsidiary Jiangsu Xinzhongzhou reported a revenue of 635 million in 2023, a 41.39% increase, but net profit decreased by 63.04% due to pricing concessions on large orders and increased operational costs [1]. - The company is expanding its product applications into new energy, nuclear power, and offshore engineering sectors, which opens up significant demand potential [1]. Financial Summary - For 2023, the company reported total revenue of 1,085 million and a net profit of 83 million. The projected revenue for 2024 is 1,272 million, with net profit expected to rise to 113 million [2][5]. - The gross margin is projected to improve to 19.94% in 2024, with net profit margins increasing to 8.90% by 2024 [5]. - The company’s earnings per share (EPS) is expected to grow from 0.35 in 2023 to 0.48 in 2024, with a corresponding PE ratio decreasing from 26 to 19 [2][5].
2023年年报点评：高原料成本拖累业绩，东台产能释放成长可期