NARI-TECH(600406) 光大证券·2024-04-28 03:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its future performance [2]. Core Views - The company achieved steady growth in 2023, with operating revenue reaching 51.573 billion yuan, a year-on-year increase of 10.13%, and a net profit of 7.184 billion yuan, up 11.44% year-on-year. The company plans to distribute a cash dividend of 5.4 yuan per 10 shares [1]. - The company is expected to benefit from increased investment in the power grid, with China's power grid construction investment reaching 527.5 billion yuan in 2023, a 5.4% increase year-on-year. The company's smart grid business generated revenue of 25.635 billion yuan, growing 2.57% year-on-year [1]. - The company secured new contracts worth 58.287 billion yuan in 2023, a 12.64% increase year-on-year, indicating a strong growth momentum in its core business [1]. - The company is expanding its business in energy digitalization, with revenue from digital energy integration reaching 11.134 billion yuan, a 21.73% increase year-on-year [1]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 51.573 billion yuan and a net profit of 7.184 billion yuan. The first quarter of 2024 saw revenue of 7.699 billion yuan, a 24.25% increase year-on-year, but a significant quarter-on-quarter decrease of 80.29% [1][2]. - The company’s earnings per share (EPS) for 2024 is projected to be 1.03 yuan, with net profits expected to grow to 8.312 billion yuan in 2024 [2][5]. Business Development - The company is a leader in the smart grid sector, benefiting from ongoing investments in the power grid. The smart grid business's gross margin increased to 28.91% in 2023 [1]. - The company is actively expanding its international presence, securing significant contracts in countries like Chile, Brazil, Saudi Arabia, and South Africa [1]. Future Outlook - The company is expected to continue benefiting from increased investments in the power grid and the acceleration of digitalization in the energy sector. The projected net profits for 2024-2026 are 8.312 billion yuan, 9.523 billion yuan, and 10.511 billion yuan, respectively [2][5].