MILKYWAY(SH:603713) Guotai Junan Securities·2024-04-23 13:32Investment Rating - The investment rating for the company is "Accumulate" [2][4] - The target price is set at 65.23 yuan, down from the previous target of 86.19 yuan [2][4] Core Views - The company's performance met expectations, and it is noted for its strong operational capabilities and growth potential, leading to the maintenance of the "Accumulate" rating [2][4] - The company reported a revenue of 9.753 billion yuan for 2023, a year-on-year decrease of 15.75%, with a net profit attributable to shareholders of 431 million yuan, down 29% year-on-year [2][4] - The first quarter of 2024 showed a revenue of 2.896 billion yuan, a year-on-year increase of 23.26%, and a net profit of 151 million yuan, up 40.62% year-on-year [2][4] Summary by Sections Financial Performance - The company achieved a revenue of 9.753 billion yuan in 2023, down 15.75% year-on-year, with a net profit of 431 million yuan, a decrease of 29% [2][4] - For Q1 2024, the company reported a revenue of 2.896 billion yuan, up 23.26% year-on-year, and a net profit of 151 million yuan, an increase of 40.62% [2][4] Earnings Forecast - The earnings per share (EPS) for 2023 is projected at 2.63 yuan, with estimates for 2024 and 2025 at 3.48 yuan and 4.35 yuan respectively [2][4] - The company’s EPS for 2026 is forecasted to be 5.29 yuan [2][4] Valuation Metrics - The company is valued at a PE ratio of 20.97 for 2023, with a projected PE of 15.83 for 2024 [2][4] - The net asset return rate (ROE) is expected to be 10.7% for 2023, increasing to 12.7% in 2024 [2][4] Market Position - The company has established over 700,000 square meters of specialized chemical warehouses across the country and has expanded its global presence with subsidiaries in the USA, Singapore, and Malaysia [2][4] - The market for hazardous chemical logistics in China is estimated at 2.2 trillion yuan, with significant growth potential for the company [2][4]