Riyue HI(SH:603218) EBSCN·2024-04-28 02:32Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6][15]. Core Insights - The company is actively expanding its nuclear power and alloy steel businesses, which opens up growth opportunities. It has completed trial production and performance testing of nuclear waste storage tanks and has successfully developed special alloy steel products, achieving significant revenue growth in the alloy steel segment [1][14]. - The company has improved its profitability significantly in 2023, with a notable increase in gross margin and net margin due to cost control measures and efficiency improvements [14][15]. - The company has established a substantial casting capacity of 700,000 tons and is progressing on a large casting processing project, which is expected to enhance its profit margins [3][14]. Financial Performance - In 2023, the company reported a revenue of 4.556 billion yuan, a decrease of 4.30% year-on-year, while the net profit attributable to shareholders increased by 39.84% to 482 million yuan [4][14]. - The gross margin improved to 18.66%, up 5.82 percentage points year-on-year, and the net profit margin increased to 10.28%, reflecting enhanced operational efficiency [14][15]. - The company plans to distribute a cash dividend of 0.28 yuan per share to all shareholders [4]. Future Projections - The company is expected to achieve net profits of 647 million yuan, 812 million yuan, and 937 million yuan for the years 2024 to 2026, respectively, with corresponding EPS of 0.63 yuan, 0.79 yuan, and 0.91 yuan [15]. - The current stock price corresponds to a P/E ratio of 19 for 2024, 15 for 2025, and 13 for 2026, indicating potential for future growth [15].