weizhixiang(SH:605089) Guotai Junan Securities·2024-04-28 06:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 36.50 CNY, down from a previous forecast of 45.00 CNY [4][5]. Core Insights - The company's performance has fallen short of expectations, but gradual improvement is anticipated as demand recovers and operational efficiencies are enhanced [4][5]. - The report highlights that the company's new production capacity has led to increased fixed costs due to depreciation and amortization, impacting short-term profitability [4][5]. - Sales performance is expected to improve as personnel allocation and channel expansion efforts yield results, with cost efficiency also projected to enhance [4][5]. Financial Summary - The company's revenue for 2023 is reported at 799 million CNY, showing a slight increase of 0.10% year-on-year, while net profit attributable to shareholders is 135 million CNY, reflecting a decrease of 4% [4][5]. - For 2024, the forecasted EPS is adjusted to 1.01 CNY, down from a previous estimate of 1.39 CNY, with expectations of gradual recovery in demand and profitability [4][5]. - The report projects a revenue increase to 855 million CNY in 2024, with net profit expected to rise to 139 million CNY [4][5]. Profitability and Valuation Metrics - The report indicates a decline in operating profit margin from 15.6% in 2022 to 15.0% in 2023, with expectations of stabilization around 15.0% to 16.0% in the following years [4][5]. - The net asset return rate is projected to decrease from 11.8% in 2022 to 10.7% in 2023, with a gradual recovery anticipated thereafter [4][5]. - The company's valuation metrics include a PE ratio of 28.55 for 2023, with expectations of a decrease to 23.61 by 2025 [4][5].