HYATECH(SH:688510) INDUSTRIAL SECURITIES·2024-04-26 01:32Investment Rating - The report assigns an "Accumulate" rating to the company based on its performance and growth prospects [2][33]. Core Insights - In 2023, the company achieved operating revenue of 544 million yuan, a year-on-year increase of 49.93%, with a net profit attributable to shareholders of 90 million yuan, up 349.61% year-on-year [3][13]. - The company continues to see stable growth in both international and domestic business segments, with significant improvements in productivity and product quality [4][16]. - The company has signed long-term cooperation agreements with major clients, including a significant increase in the delivery of LEAP engine blades to Safran, with expectations for further growth in 2024 [17][19]. Financial Performance - For 2023, the company reported a gross margin of 35.99%, an increase of 6.29 percentage points year-on-year, and a net profit margin of 16.60%, up 11.06 percentage points year-on-year [22][42]. - The first quarter of 2024 saw operating revenue of 161 million yuan, a year-on-year increase of 41.76%, and a net profit of 32 million yuan, up 153.27% year-on-year [41][22]. - The company’s cash flow from operating activities reached 121 million yuan in 2023, a 132% increase year-on-year, indicating improved cash collection [25]. Business Segments - In 2023, the aviation segment generated 484 million yuan in revenue, accounting for 89.13% of total revenue, with a gross margin of 35.62% [42][16]. - The medical segment achieved revenue of 54 million yuan, growing 37.20% year-on-year, with a gross margin of 34.76% [42][16]. - The domestic engine parts business grew robustly, with a year-on-year increase of 33.48%, and the proportion of parts/batch production business rose significantly from 33% in 2022 to 69% in 2023 [17][44]. Future Outlook - The company has announced a restrictive stock incentive plan for 2024, aiming for net profits of no less than 135 million yuan in 2024, with expected growth rates of 54.32%, 33.33%, and 22.22% for the following years [2][31]. - The forecast for net profit attributable to shareholders for 2024-2026 is 134 million, 180 million, and 225 million yuan, respectively, with corresponding EPS of 0.52, 0.70, and 0.87 yuan [11][33].