2023年扭亏为盈，静待成本优化释放利润

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company turned profitable in 2023, with a revenue of 5.56 billion yuan, a year-on-year increase of 6.58%, and a net profit attributable to shareholders of 96 million yuan, a year-on-year increase of 137.55% [2] - The company is expected to benefit from cost optimization and improved profitability, particularly with the ongoing development of special steel wire products [4] Financial Performance Summary - In 2023, the company's gross margin improved to 8.25%, up 6.17 percentage points year-on-year, due to reduced costs of raw materials and energy [3] - The company reported a net profit of 702.20 thousand yuan in Q1 2024, a year-on-year decline of 79.05%, but a significant increase of 177.50% in net profit after deducting non-recurring items [3] - Revenue projections for 2024-2026 are estimated at 6.395 billion yuan, 7.581 billion yuan, and 8.808 billion yuan, respectively, with net profits of 152 million yuan, 298 million yuan, and 340 million yuan [4][5] Operational Developments - The company has expanded its production capacity with the addition of two new tire wire production lines, increasing capacity by 50,000 tons [4] - The company is advancing its green energy initiatives, which are expected to further enhance profitability [4]