JJHB(SH:603279) Guohai Securities·2024-04-26 07:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has shown significant growth in revenue and net profit, with a 10% year-on-year increase in revenue for 2023, reaching 6.25 billion yuan, and a 20.9% increase in net profit, totaling 1.01 billion yuan [9] - In Q1 2024, the company achieved a revenue of 1.51 billion yuan, up 2.7% year-on-year, and a net profit of 230 million yuan, reflecting a 6.7% increase [3][6] - The growth in revenue is primarily driven by the new energy and environmental protection sectors, with notable increases in core components and supporting equipment [5] Summary by Sections Financial Performance - The company reported a net profit margin of 16.1% for 2023, an increase of 1.5 percentage points year-on-year, attributed to lower raw material costs and reduced management expenses [14] - The gross profit margin for 2023 was 31.8%, up 1.0 percentage points from the previous year [14] - The operating cash flow showed signs of recovery, with Q4 2023 cash flow at 170 million yuan, a significant improvement from the previous quarter [8] Revenue Breakdown - Revenue contributions from various sectors in 2023 included: - New energy materials: 1.66 billion yuan (+46%) - Environmental protection: 1.61 billion yuan (+10%) - Core components: - Filter plates: 490 million yuan (+11.6%) - Filter cloths: 300 million yuan (+36.5%) - Other components: 560 million yuan (+119%) [5] Future Outlook - The company is expected to continue its growth trajectory, with projected revenues of 6.49 billion yuan, 6.94 billion yuan, and 7.53 billion yuan for 2024, 2025, and 2026 respectively [14] - The forecasted net profits for the same years are 1.08 billion yuan, 1.18 billion yuan, and 1.28 billion yuan, indicating a stable growth outlook [14]