HMD(002947) Soochow Securities·2024-04-25 13:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][14] Core Views - The company reported significant year-on-year growth in 2023, with revenue reaching 1.82 billion yuan, a 17.5% increase, and net profit attributable to shareholders at 280 million yuan, a 45.5% increase. In Q4 2023, revenue was 610 million yuan, up 4.9%, and net profit was 90 million yuan, up 108.1%. For Q1 2024, revenue was 430 million yuan, a 22.2% increase, and net profit was 70 million yuan, a 69.2% increase. The gross margin for 2023 was 30.4%, a decrease of 0.6 percentage points, while the net profit margin increased by 3.0 percentage points to 15.5% [2][12][14]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 1.82 billion yuan, with a year-on-year growth of 17.5%. The net profit attributable to shareholders was 280 million yuan, reflecting a 45.5% increase. The gross margin was 30.4%, and the net profit margin was 15.5% [2][12][14]. Business Expansion - The company is expanding its capacity in the data communication and new energy sectors, which are expected to drive future growth. In 2023, revenue from communication products was 260 million yuan, a decrease of 2.9%. The company plans to raise up to 1.16 billion yuan for the construction of a smart manufacturing base in Huizhou, targeting new energy charging stations and energy storage businesses, with an expected annual sales revenue of 2.6 billion yuan upon reaching full capacity [3][12]. Consumer Electronics Sector - The consumer electronics sector showed a clear recovery trend, with revenue of 1.52 billion yuan in 2023, a 21.7% increase. The global smartphone shipment decline was minimal, and the company maintained deep cooperation with clients from the R&D stage, which is expected to support continued growth [13][14]. Profit Forecast and Valuation - The profit forecast for 2024-2026 estimates net profits of 450 million yuan, 712 million yuan, and 831 million yuan, respectively. The current market valuation corresponds to P/E ratios of 16.4, 10.4, and 8.9 times for the respective years [14].