Ningbo KBE Electrical Technology (SZ:300863) Guoyuan Securities·2024-04-25 06:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 43.00 yuan [3][14]. Core Insights - The company achieved a revenue of 34.52 billion yuan in 2023, representing a year-on-year increase of 17.08%. The net profit reached 1.66 billion yuan, up 18.49% year-on-year [1]. - The company adopted a quality-over-quantity strategy amidst industry competition, leading to improved profit margins and operational efficiency [3]. - The company is expanding its overseas operations with an investment of up to 25 million USD in Mexico, which is expected to enhance its market reach [2]. Financial Performance - In 2023, the company sold 6.2582 million kilometers of cables, a 20.24% increase year-on-year, while the sales of new energy cables decreased by 6.23% [1]. - The average price of new energy cables rose to 1,525.11 yuan per kilometer, an increase of approximately 105 yuan compared to 2022 [1]. - Key financial metrics for 2023 included a gross margin of 12.40%, a net margin of 4.81%, and an asset turnover ratio of 1.33x, all showing slight improvements from 2022 [1]. Revenue and Profit Forecast - The revenue forecasts for 2024, 2025, and 2026 are projected at 42.99 billion yuan, 50.88 billion yuan, and 61.50 billion yuan, respectively. Corresponding net profits are expected to be 2.22 billion yuan, 2.76 billion yuan, and 3.46 billion yuan [3][13]. - The report anticipates basic earnings per share of 1.78 yuan, 2.22 yuan, and 2.78 yuan for the years 2024, 2025, and 2026, respectively [3][13]. Strategic Developments - The company is focusing on developing new products in response to customer demands, particularly in the energy storage sector, which has already received client recognition [2]. - The company’s direct clients include leading global firms, and its end customers encompass major automotive manufacturers such as Volkswagen, General Motors, and Tesla, indicating a strong market position [2].