GS(SH:601500) Guohai Securities·2024-04-28 15:30Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Insights - The company achieved a revenue of 5.064 billion yuan in 2023, representing a year-on-year increase of 22.91%. The net profit attributable to shareholders was 216 million yuan, an increase of 199 million yuan year-on-year [3][21]. - The gross profit for 2023 was 797 million yuan, up by 363 million yuan year-on-year, with a gross margin of 15.74%, an increase of 5.19 percentage points [3][21]. - The company reported a significant increase in cash flow from operating activities, amounting to 892 million yuan, which is an increase of 723 million yuan year-on-year [3][21]. Financial Performance Summary - In Q4 2023, the company recorded a net profit of 57.74 million yuan, with a gross profit of 285 million yuan. The operating cash flow for this quarter was 198 million yuan [6][21]. - For Q1 2024, the company achieved a net profit of 153 million yuan, a quarter-on-quarter increase of 95.11 million yuan, driven by a 27.49% increase in tire sales volume [6][21]. - The company’s tire production volume in 2023 was 11.976 million units, a year-on-year increase of 39.13%, while sales volume reached 11.861 million units, up by 38.90% [23][21]. Future Projections - The company is expected to generate revenues of 6.830 billion yuan, 9.636 billion yuan, and 11.309 billion yuan for the years 2024, 2025, and 2026, respectively. The net profit attributable to shareholders is projected to be 700 million yuan, 1.034 billion yuan, and 1.346 billion yuan for the same years [27][69]. - The report anticipates a PE ratio of 14, 9, and 7 for the years 2024, 2025, and 2026, respectively, reflecting the company's growth potential [27][69]. Production Capacity Expansion - The company is progressing with its production capacity expansion projects, including the completion of the first phase in Cambodia by June 2024 and ongoing construction of the second phase in Thailand and Cambodia, expected to be completed by 2025 [7].