Create Century(SZ:300083) Guotai Junan Securities·2024-04-24 05:02Investment Rating - The report maintains a rating of "Buy" for the company with a target price of 8.37 CNY, down from the previous target of 8.50 CNY [9][17]. Core Insights - The company experienced a significant improvement in Q4 performance, driven by a recovery in the 3C sector and equipment upgrades. The AI trend is expected to inject new vitality into the 3C industry, leading to increased demand for processing machine tools [17]. - The company reported a revenue of 3.53 billion CNY in 2023, a decrease of 22.04% year-on-year, with a net profit of 194 million CNY, down 41.95% [17]. - The company plans to focus on high-end five-axis machines and expand into overseas markets, with a notable increase in overseas revenue by 74.8% year-on-year [17]. Financial Summary - Revenue projections for 2024 are set at 4.75 billion CNY, with a growth rate of 35% compared to 2023. The net profit is expected to rebound to 450 million CNY, reflecting a 131% increase [8][17]. - The company's gross margin for 2023 was 23.25%, down 3.25 percentage points from the previous year, while the net profit margin was 5.79%, down 1.59 percentage points [17]. - R&D expenses for 2023 were 139 million CNY, an increase of 18.3% year-on-year, indicating a commitment to innovation and product development [17]. Valuation Metrics - The report provides valuation metrics, including an EV/EBITDA of 12.47 for 2024 and a P/E ratio of 21.35 for the same year [8]. - The company’s net asset return rate is projected to improve to 8.5% in 2024, up from 4.0% in 2023 [8][17]. Market Context - The company operates in the machine tool manufacturing sector, which is expected to benefit from government policies aimed at promoting equipment upgrades in the industrial sector [17]. - The report highlights the competitive landscape, comparing the company with peers and noting its broad product range and technological capabilities [14][17].