QuakeSafe Technology(SZ:300767) EBSCN·2024-04-23 05:32Investment Rating - The report downgrades the investment rating of the company to "Accumulate" [2][7] Core Views - The company reported a significant decline in revenue and profit, with 2023 revenue at 694 million yuan, down 22.7% year-on-year, and a net loss of 41 million yuan, reversing from profit [4][5] - The first quarter of 2024 continued the downward trend with revenue of 110 million yuan, a 13.8% decrease year-on-year, and a net loss of 7 million yuan [4][5] - The decline in revenue is attributed to changes in the industry environment and adjustments in sales and collection policies, leading to a proactive abandonment of certain projects [4][6] - Despite the challenges, the company has improved its operating cash flow, turning positive with 80 million yuan in 2023 and 70 million yuan in Q1 2024 [5] Summary by Sections Market Data - The total share capital is 247 million shares, with a current market value of 2.428 billion yuan [2] Financial Performance - The company’s gross margin decreased to 34.6% in 2023 and 28.2% in Q1 2024, with significant increases in sales, management, and R&D expenses [5][9] - The forecast for 2024 net profit is adjusted down to 4 million yuan, a 94% reduction, with new projections for 2025 and 2026 at 4.8 million and 5.6 million yuan respectively [7][9] Industry Environment - The company remains a leader in the domestic seismic isolation industry, with ongoing policy support for seismic isolation technology and product applications, indicating potential for future growth [6][7]