Investment Rating - The report assigns a "Buy" rating for the company with a target price of 28.31 yuan over the next six months [13][17]. Core Insights - The company's main products have significantly improved profitability, leading to substantial performance enhancement in 2023. The revenue for casting materials reached 710 million yuan, up 6.7% year-on-year, with a gross margin of 27.5%, an increase of 5.1 percentage points. The company also reported a net profit attributable to shareholders of 140 million yuan, a remarkable increase of 88.8% year-on-year [2][13][55]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 1.01 billion yuan, a year-on-year increase of 6.5%. The net profit attributable to the parent company was 140 million yuan, up 88.8% year-on-year, with a basic earnings per share (EPS) of 1.3 yuan, an increase of 89.6% [13][50][55]. - The gross margin improved to 25.1% in 2023, recovering from a decline in previous years due to rising raw material costs and market conditions [25][55]. Market Position and Product Development - The company is a leader in the domestic casting sand market, particularly known for its environmentally friendly products. It has developed a mature business model for recycling casting waste sand and has established a strong market presence [9][19]. - The full subsidiary has obtained mining rights for quartz sand, enhancing the company's raw material supply capabilities, which is crucial for sustainable development [3][19]. Future Outlook - The company anticipates steady growth in revenue, projecting 1.134 billion yuan in 2024, 1.276 billion yuan in 2025, and 1.438 billion yuan in 2026, with corresponding net profits of 159 million yuan, 182 million yuan, and 222 million yuan [15][33][45]. - The automotive parts and oil and gas extraction industries are expected to drive demand for the company's products, with significant growth in the automotive sector and a historical high in domestic oil and gas production [14][30].
2023年报点评：产品盈利能力提升，业绩大幅改善