JJHB(SH:603279) Minsheng Securities·2024-04-25 04:00Investment Rating - The report maintains a "Recommended" rating for the company [1][11]. Core Views - The company achieved a revenue of 6.249 billion yuan in 2023, representing a year-on-year growth of 9.98%, and a net profit attributable to shareholders of 1.008 billion yuan, up 20.89% year-on-year [1]. - The revenue for Q1 2024 was 1.507 billion yuan, with a year-on-year increase of 2.66%, and a net profit of 229 million yuan, growing 6.7% year-on-year [1]. - The product structure shows a steady increase in the proportion of diaphragm filter presses, with total filter press revenue reaching 4.884 billion yuan in 2023, a growth of 2.78% year-on-year [1]. - The company is expanding its complete equipment layout and has invested 480 million yuan in the second phase of the filtration complete equipment industrialization project [1]. Summary by Sections Financial Performance - In 2023, the company reported a gross margin of 31.75%, an increase of 1.02% year-on-year, and a net profit margin of 16.13%, up 1.45% year-on-year [1]. - The company’s revenue from the environmental protection sector was 1.61 billion yuan, a 10% increase year-on-year, while the mining and processing sector generated 1.663 billion yuan, up 7% year-on-year [1]. - The company’s net profit forecasts for 2024-2026 are 1.121 billion yuan, 1.268 billion yuan, and 1.432 billion yuan, respectively, with corresponding PE ratios of 12x, 10x, and 9x [1]. Product and Market Development - The diaphragm filter press revenue reached 3.944 billion yuan in 2023, with a year-on-year growth of 5.72% [1]. - The company has begun to disclose its supporting equipment business separately, which generated 420 million yuan in revenue in 2023 [1]. - The company’s contract liabilities increased to 2.598 billion yuan in Q1 2024, reflecting a year-on-year growth of 17.8% [1]. Strategic Initiatives - The company is focusing on horizontal expansion of supporting equipment to enhance its overall industry layout [1]. - The investment in the complete equipment industrialization project is expected to provide a new growth engine for the company [1].