FIRMACO(600967) 民生证券·2024-04-26 03:00Investment Rating - The report maintains a "Recommend" rating for the company [4] Core Views - The company's revenue in 2023 was RMB 10.01 billion, a YoY decrease of 30.2%, while net profit attributable to the parent company was RMB 850 million, a YoY increase of 3.4% [2] - In 1Q24, the company achieved revenue of RMB 2.28 billion, a YoY decrease of 11.9%, and net profit attributable to the parent company was RMB 168 million, a YoY decrease of 21.5% [2] - The decline in revenue was primarily due to a decrease in special orders and delays in the delivery of foreign trade products [2] - The company's profitability improved in 2023, with gross margin increasing by 4.7 percentage points to 16.1% and net margin increasing by 2.7 percentage points to 8.4% [2] - The company is expected to achieve net profit attributable to the parent company of RMB 920 million, RMB 1.02 billion, and RMB 1.07 billion in 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 15x, 13x, and 13x [2] Financial Performance - In 4Q23, the company's revenue was RMB 2.17 billion, a YoY decrease of 42.8%, while net profit attributable to the parent company was RMB 260 million, a YoY increase of 16.1% [2] - The company's gross margin in 4Q23 increased by 11.2 percentage points to 26.1%, and net margin increased by 5.7 percentage points to 11.7% [2] - In 1Q24, the company's gross margin increased by 1.0 percentage point to 13.5%, while net margin decreased by 0.9 percentage points to 7.3% [2] - The company's operating cash flow improved significantly in 2023, reaching RMB 940 million compared to RMB -4.4 billion in 2022 [2] Operational Highlights - The company's special orders declined in 2023, and the delivery of foreign trade products was delayed, leading to a decrease in revenue [2] - The company's operating plan completion rate for 2023 was only 68.2%, compared to over 103% in 2021 and 2022 [2] - The company's 2024 operating plan projects revenue of RMB 10 billion [2] - The company's inventory at the end of 1Q24 was RMB 2.9 billion, a decrease of 16.5% compared to the beginning of the year, while contract liabilities were RMB 3.62 billion, a decrease of 36.5% [2] Cost Control and Efficiency - The company's period expenses in 2023 decreased by 9.6% to RMB 870 million, with R&D expenses decreasing by 11.0% to RMB 510 million and management expenses decreasing by 7.5% to RMB 410 million [2] - Sales expenses increased by 78.7% to RMB 45 million due to increased communication with foreign customers [2] Industry and Strategic Position - The company is the only listed company in China specializing in the development and production of special ground equipment, benefiting from the national strategy of integrating mechanization, informatization, and intelligentization in equipment development [2]