CSB(SZ:300718) ZHONGTAI SECURITIES·2024-04-25 02:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index over the next 6 to 12 months [4][27]. Core Insights - The company achieved a revenue of 1.105 billion yuan in 2023, a year-on-year increase of 3.18%, and a net profit of 242 million yuan, a significant year-on-year increase of 137.26% [1][4]. - The growth in net profit outpaced revenue growth primarily due to the impact of non-recurring losses in 2022. Excluding these factors, the adjusted net profit increased by 39.25% year-on-year, indicating strong growth momentum [1][4]. - In Q1 2024, the company reported a revenue of 276 million yuan, a year-on-year increase of 6.85%, and a net profit of 52 million yuan, a year-on-year increase of 1.29%, reflecting a slowdown in growth due to a high base in Q1 2023 [1][17]. Financial Performance - The company's gross margin improved significantly, reaching 35.81% in 2023, an increase of 6.43 percentage points year-on-year. The net margin also improved to 21.88%, up by 12.45 percentage points year-on-year [35]. - The company maintained stable cost control, with sales and management expense ratios at 7.60% for 2023 and 7.97% for Q1 2024, showing a slight decrease in Q1 2024 compared to Q1 2023 [20]. - The company continues to invest in R&D, with R&D expense ratios of 4.52% in 2023 and 4.35% in Q1 2024, which supports its competitive advantage in technology [20]. Market Position and Growth Potential - The self-lubricating bearing market is steadily growing, with the market size of sliding bearings in China increasing from 10.497 billion yuan in 2017 to 16.512 billion yuan in 2022. The self-lubricating bearing market alone reached 13.995 billion yuan in 2022, accounting for approximately 85% of the sliding bearing industry [21]. - The company has a competitive advantage in the automotive sector, where its products are used in various applications. Despite a currently low market share, it is expected to gain more traction as the automotive supply chain shifts domestically [21]. - The company is actively expanding into new product lines, including ball screws, which are expected to become a new growth point. The domestic market for ball screws is largely dominated by foreign brands, indicating a significant opportunity for domestic production [36].