HXG(SH:603112)2024-04-23 11:31Investment Rating - The report maintains a "Buy" investment rating for the company [7]. Core Views - The company's performance in 2023 met expectations, with revenue of 3.264 billion yuan, a year-on-year increase of 1%, and a net profit attributable to shareholders of 389 million yuan, a year-on-year increase of 48% [7]. - The company plans to distribute a cash dividend of 3.15 yuan per 10 shares, totaling 138 million yuan, which represents 35% of the net profit for the year, an increase of 5 percentage points from the previous year [7]. - The core businesses of compressors and automotive parts continue to grow, with total revenue from these segments reaching 2.33 billion yuan, a year-on-year increase of 16% [7]. - The engineering machinery segment showed stable revenue, although it experienced a 10% decline to 620 million yuan due to high base effects from the previous year [7]. - The iron-making business negatively impacted overall performance, with a 73% decline in revenue, but future improvements are anticipated as the company aims to reduce losses [7]. Financial Summary - The company achieved a total revenue of 3.264 billion yuan in 2023, with a projected revenue of 3.939 billion yuan for 2024, reflecting a year-on-year growth rate of 20.7% [8]. - The net profit attributable to shareholders is expected to grow from 501 million yuan in 2024 to 708 million yuan in 2026, with corresponding growth rates of 28.8% and 17.3% [8]. - The earnings per share are projected to increase from 1.15 yuan in 2024 to 1.62 yuan in 2026 [8]. - The gross margin is expected to improve from 24.4% in 2024 to 24.9% in 2026 [8]. - The return on equity (ROE) is projected to rise from 16.7% in 2024 to 17.8% in 2026 [8].