PPF(SZ:300258) Guotai Junan Securities·2024-04-23 05:32Investment Rating - The report maintains a rating of "Accumulate" for the company, with a target price adjusted to 12.20 CNY from the previous 16.94 CNY [2][5][8]. Core Insights - The company is experiencing revenue growth driven by the expansion of assembly products, despite short-term disruptions from convertible bonds, employee stock ownership plans, and foreign exchange costs. The performance is currently lagging behind revenue growth [5][8]. - The company is focusing on upgrading its precision manufacturing capabilities and expanding into emerging sectors such as lightweight materials and robotics [5][8]. - The forecast for 2024-2025 EPS has been revised down to 0.61 CNY and 0.74 CNY respectively, with a new 2026 EPS forecast of 0.89 CNY. The valuation is slightly above the average of comparable companies, with a projected PE of 20 times for 2024 [8][19]. Financial Summary - For 2023, the company is expected to achieve total revenue of 2,103 million CNY, representing a 16.3% increase, while net profit is projected to decrease by 3.9% to 238 million CNY [5][19]. - The gross profit margin for 2023 is estimated at 27.4%, a decrease of 1.7 percentage points compared to the previous year, with a net profit margin of 11.2%, down 2.5 percentage points [5][19]. - The company’s operating profit (EBIT) for 2023 is forecasted at 262 million CNY, reflecting a 3% increase from the previous year [19]. Operational Metrics - The company is expected to maintain a stable expense ratio while focusing on product structure improvements to enhance gross margins [5][19]. - The report highlights the company's efforts to capture opportunities in the electrification trend and its transition from parts to complete assemblies [8][19]. Valuation Metrics - The company’s current PE ratio is 18.1, with a projected PE of 18.4 for 2024, indicating a competitive valuation compared to peers [20]. - The report notes that the company’s valuation is slightly above the average of comparable companies, suggesting a cautious outlook amid increasing competition [8][20].