ERA(002641) 天风证券·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 6.03 CNY, representing an expected upside of over 20% from the current price of 4.82 CNY [20][15][17]. Core Insights - The company achieved a revenue of 7.47 billion CNY in 2023, a decrease of 6.35% year-on-year, while the net profit attributable to the parent company surged by 363% to 363 million CNY [12][19]. - The company’s market share increased by 0.14 percentage points in 2023, with production and sales volumes rising by 1.99% and 1.43% respectively [12]. - The gross margin for the company improved to 22.2% in 2023, up by 3.85 percentage points year-on-year, driven by easing pressure on raw material costs [14][12]. Financial Performance Summary - The company reported a net profit of 375.76 million CNY for 2023, with an expected growth to 411.51 million CNY in 2024 and 467.20 million CNY in 2025 [19][9]. - Earnings per share (EPS) increased from 0.07 CNY in 2022 to 0.30 CNY in 2023, with projections of 0.33 CNY and 0.38 CNY for 2024 and 2025 respectively [19][10]. - The company plans to distribute a cash dividend of 1.22 million CNY for 2023, representing a payout ratio of 34% [15]. Business Segment Analysis - In 2023, the revenue from PVC, PPR, PE, and lighting components was 3.18 billion CNY, 1.20 billion CNY, 1.46 billion CNY, and 949 million CNY respectively, with varying growth rates across segments [13]. - The gross margins for the three main pipe materials were 20.23%, 43.10%, and 18.62%, reflecting improvements due to reduced raw material costs [13]. Cash Flow and Financial Ratios - The company’s cash flow from operations significantly improved to 1.07 billion CNY in 2023, indicating strong cash generation capabilities [14]. - The asset-liability ratio stood at 33.75% in 2023, suggesting a stable financial structure [20].