Riyue HI(SH:603218) Minsheng Securities·2024-04-26 02:30Investment Rating - The report maintains a "Recommended" rating for the company, considering the gradual release of industry demand and the upcoming realization of new quality production capacity [2][12]. Core Views - In 2023, the company achieved operating revenue of 4.656 billion yuan, a year-on-year decrease of 4.30%, while net profit attributable to shareholders increased by 39.84% to 482 million yuan [1][2]. - The company is expected to see revenue growth in the coming years, with forecasts of 5.69 billion yuan in 2024, 7.21 billion yuan in 2025, and 8.00 billion yuan in 2026, representing growth rates of 22.3%, 26.6%, and 10.9% respectively [2][3]. - The net profit attributable to shareholders is projected to reach 700 million yuan in 2024, 830 million yuan in 2025, and 960 million yuan in 2026, with growth rates of 44.9%, 18.9%, and 16.1% respectively [2][3]. Financial Performance Summary - The company's gross profit margin improved to 18.66% in 2023, an increase of 5.82 percentage points year-on-year, while the net profit margin rose to 10.28%, up by 3.21 percentage points [10]. - The company has made significant progress in capacity expansion, achieving a production capacity of 700,000 tons for castings and 320,000 tons for precision machining, with additional projects underway [10]. - The financial indicators for 2023 show a net profit margin of 10.34%, a current ratio of 2.54, and a debt-to-asset ratio of 28.73% [5][16].