CNGR(SZ:300919) Soochow Securities·2024-04-24 13:30Investment Rating - The investment rating for Zhongwei Co., Ltd. is "Buy" (maintained) [1] Core Views - The company's 2023 net profit attributable to shareholders reached 1.9 billion yuan, a year-on-year increase of 26%, aligning with market expectations. The total revenue for 2023 was 34.3 billion yuan, up 13% year-on-year, with a gross profit margin of 14%, an increase of 2.4 percentage points [3][4] - The shipment of precursor materials exceeded 270,000 tons in 2023, with expectations for a 20-30% growth in 2024. The company is actively expanding its domestic market presence [3][4] - The integrated production ratio is expected to further increase in 2024, contributing to profit enhancement [4] Financial Performance - Total revenue (in million yuan) for 2022A was 30,344, for 2023A was 34,273, and projections for 2024E, 2025E, and 2026E are 39,861, 47,850, and 56,644 respectively, indicating a growth rate of 12.95%, 16.30%, 20.04%, and 18.38% [2][10] - The net profit attributable to shareholders (in million yuan) for 2022A was 1,543, for 2023A was 1,947, and projections for 2024E, 2025E, and 2026E are 2,365, 2,846, and 3,473 respectively, with year-on-year growth rates of 26.15%, 21.50%, 20.32%, and 22.04% [2][10] - The latest diluted EPS (in yuan/share) for 2022A was 2.30, for 2023A was 2.91, and projections for 2024E, 2025E, and 2026E are 3.53, 4.25, and 5.18 respectively [2][10] Market Data - The closing price of the stock is 49.39 yuan, with a one-year low of 38.03 yuan and a high of 64.90 yuan. The market capitalization is approximately 33.08 billion yuan [7][8] Valuation - The company is projected to have a P/E ratio of 14x for 2024, 12x for 2025, and 10x for 2026, with a target price of 71 yuan based on a 20x P/E for 2024 [4]