SANXING(SH:601567) SINOLINK SECURITIES·2024-04-26 02:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1][10]. Core Views - The company achieved a revenue of 11.46 billion RMB in 2023, a year-on-year increase of 26%, and a net profit of 1.90 billion RMB, doubling from the previous year. The gross margin reached 33.99%, up by 5.11 percentage points [1]. - In Q1 2024, the company reported a revenue of 3.03 billion RMB, reflecting a 35% year-on-year growth, with a net profit of 360 million RMB, also up by 35% [1]. - The company is expanding its overseas distribution and system integration projects, with a sales network covering over 70 countries and five factories in Brazil, Indonesia, Poland, Mexico, and Germany. In 2023, overseas revenue reached 1.96 billion RMB, a 20% increase [1][2]. - Domestic revenue from power distribution and utilization reached 6.48 billion RMB in 2023, a 25% increase, with a backlog of orders amounting to 6.96 billion RMB as of Q1 2024, up 19% year-on-year [2]. - The medical services segment saw a revenue of 2.81 billion RMB in 2023, growing by 34.6%, with rehabilitation services growing by 65% [3]. Summary by Sections Performance Overview - 2023 revenue: 11.46 billion RMB (+26% YoY) - 2023 net profit: 1.90 billion RMB (+100% YoY) - Q1 2024 revenue: 3.03 billion RMB (+35% YoY) - Q1 2024 net profit: 360 million RMB (+35% YoY) [1][6]. Operational Analysis - Overseas sales network covers 70+ countries, with significant projects in Europe and Latin America. - 2023 overseas revenue: 1.96 billion RMB (+20% YoY) - Q1 2024 backlog of overseas orders: 5.50 billion RMB (+58% YoY) [1][2]. Domestic Market - Domestic revenue from power distribution: 6.48 billion RMB (+25% YoY) - Q1 2024 backlog of domestic orders: 6.96 billion RMB (+19% YoY) [2]. Medical Services - 2023 revenue from medical services: 2.81 billion RMB (+34.6% YoY) - Rehabilitation services revenue: 1.31 billion RMB (+65% YoY) [3]. Profit Forecast and Valuation - Expected revenue for 2024/2025/2026: 14.24 billion RMB / 17.71 billion RMB / 21.96 billion RMB (+24% YoY each year) - Expected net profit for 2024/2025/2026: 2.29 billion RMB / 2.83 billion RMB / 3.47 billion RMB (+20% / +24% / +23% YoY) - Current PE valuation: 21x / 17x / 14x for the respective years [4][6].