NNCC(SH:600435) AVIC Securities·2024-04-29 01:30Investment Rating - The investment rating for the company is "Buy" with a target price of 10.80 CNY per share [1][16]. Core Views - The company reported a revenue of 3.565 billion CNY in 2023, a decrease of 7.16% year-on-year, while the net profit attributable to shareholders was 192 million CNY, an increase of 3.90% [1]. - The company has focused on its core business, leading to a rapid growth in net profit excluding non-recurring items, which increased by 26.71% to 177 million CNY [1]. - The gross margin improved to 24.80%, up by 3.21 percentage points, and the net margin increased to 7.02%, up by 0.33 percentage points [1]. - The company has significantly increased its R&D investment, which is expected to enhance its core competitiveness and drive future performance growth [1][11]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 3.565 billion CNY, down 7.16% from the previous year, primarily due to tax policy adjustments [1]. - The net profit attributable to shareholders was 192 million CNY, reflecting a 3.90% increase, while the net profit excluding non-recurring items reached 177 million CNY, marking a 26.71% growth [1][17]. - The gross margin for the year was 24.80%, and the net margin was 7.02%, indicating improvements in profitability [1]. R&D and Competitive Position - The company has increased its R&D intensity, with R&D expenses rising by 18.70% to 245 million CNY, representing 6.88% of revenue, an increase of 1.50 percentage points [1]. - The company completed 86 projects and 78 technological innovations during the reporting period, enhancing its capabilities in guided control systems and military communications [1][11]. Future Outlook - The company expects to achieve a revenue of 3.8 billion CNY and a profit of 290 million CNY in 2024, ensuring steady growth in high-quality development [27]. - Forecasts for 2024-2026 indicate revenues of 3.988 billion CNY, 4.822 billion CNY, and 5.975 billion CNY, with net profits of 220 million CNY, 276 million CNY, and 344 million CNY respectively [16][17].