HQTI(SH:688281) Changjiang Securities·2024-04-25 03:02Investment Rating - The investment rating for the company is "Buy" and is maintained [13]. Core Views - The company is experiencing robust revenue growth driven by strong order volumes and successful new business expansions, which solidify its long-term growth prospects [25][15]. - The company reported a revenue of 917 million in 2023, representing a year-on-year growth of 36.45%, with a net profit of 335 million, a slight increase of 0.48% [12][29]. - The company has a strong order backlog, with approximately 800 million in orders as of March 2024, indicating high growth certainty [15]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 917 million, a 36.45% increase year-on-year, and a net profit of 335 million, reflecting a 0.48% growth [12]. - The fourth quarter of 2023 saw a revenue of 315 million, a 30.59% increase year-on-year, but a net profit decrease of 51.72% compared to the previous year [12][29]. - The company forecasts revenues of 1.21 billion, 1.62 billion, and 2.11 billion for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 56%, 29%, and 30% [28]. Business Development - The company has successfully transitioned several stealth material models into small batch production, with ongoing capacity expansion projects [15]. - New business ventures, including aerospace component processing and acoustic metamaterials, are beginning to contribute to revenue [28]. - The company has secured significant contracts worth 642 million in total for batch production projects, indicating strong demand for its products [15]. Market Position - The company has a competitive advantage in the market due to its technological capabilities and a rich reserve of stealth material models [15]. - The company’s products are primarily used in advanced military applications, which are expected to drive future growth [31].