Neway CNC(SH:688697) Soochow Securities·2024-04-25 18:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of 5% to 15% over the next six months [11][22]. Core Insights - The company's fundraising projects, particularly the "Phase III High-end CNC Machine Tool Industrialization Project," are expected to alleviate capacity constraints, with full production anticipated by 2024, adding approximately 2,000 CNC machine tools and generating nearly 1.2 billion yuan in additional output [1]. - The company has experienced a slowdown in revenue growth due to a high base in 2023, but it remains optimistic about future performance driven by a recovery in domestic manufacturing and expansion into overseas markets [9][19]. - The company has increased its R&D investment, with R&D expenses rising by 24.22% in 2023, accounting for 4.39% of revenue, which is expected to enhance product competitiveness [10][11]. Financial Summary - The company reported total revenue of 2.32 billion yuan in 2023, with a year-on-year growth of 25.76%. The net profit attributable to shareholders was 317.65 million yuan, reflecting a growth of 21.13% [8][11]. - The projected net profits for 2024, 2025, and 2026 are 372.51 million yuan, 445.28 million yuan, and 525.85 million yuan, respectively, with corresponding P/E ratios of 17.21, 14.40, and 12.19 [8][11]. - The company's cash flow from operating activities is expected to improve significantly, with projections of 627 million yuan in 2025 [7]. Market Data - The company's closing price is 19.63 yuan, with a market capitalization of approximately 6.41 billion yuan [4]. - The company has a price-to-book ratio of 3.82 and a one-year price range of 11.81 to 28.00 yuan [4]. R&D and Competitive Position - The company has focused on enhancing its core technologies, with a total of 19 invention patents and 172 utility model patents as of the end of 2023 [10]. - The R&D spending in Q1 2024 was 26.59 million yuan, representing 4.85% of revenue, indicating a commitment to innovation and product development [10].