2023年业绩超市场预期，特高压景气度持续

Investment Rating - Maintains an OUTPERFORM rating with a target price of RMB 8.56 [2] - Current price is RMB 7.48 as of April 26, 2024 [2] Core Viewpoints - The company's 2023 financial performance exceeded market expectations, with revenue reaching RMB 21.05 billion, a 12.21% YoY increase, and net profit attributable to the parent company reaching RMB 885 million, a 42.99% YoY increase [2][9] - The company's Q4 2023 performance was particularly strong, with revenue of RMB 7.23 billion, a 33.74% YoY increase, and net profit of RMB 365 million, a 144.32% YoY increase [2][9] - The company's market share in the State Grid batch increased YoY, ranking first in the industry, with a 38.1% share in transformers and 45.6% in valves [11] Financial Performance - Revenue for 2023 was RMB 21.05 billion, with a 17% YoY growth, and is expected to reach RMB 24.69 billion in 2024, RMB 28.77 billion in 2025, and RMB 32.68 billion in 2026 [2] - Net profit for 2023 was RMB 885 million, with a 45% YoY growth, and is expected to reach RMB 1.18 billion in 2024, RMB 1.48 billion in 2025, and RMB 1.74 billion in 2026 [2] - The company's gross margin remained stable at 18.6% in 2023, with a slight decrease to 18.2% expected in 2024 [2] R&D and Technological Advancements - The company increased its R&D investment by 19.70%, focusing on high-voltage transmission and distribution equipment [11] - Six national key R&D projects progressed as planned, with breakthroughs in core technologies such as the 190kA large-capacity generator circuit breaker and the ±800kV rubber-impregnated paper capacitor-type converter transformer bushings [11] Industry and Market Outlook - The company is expected to benefit from the acceleration of ultra-high-voltage (UHV) construction, with five DC UHV projects and two AC UHV projects expected to start construction in 2024 [12] - The total amount of UHV equipment procurement in 2023 was RMB 40.52 billion, a 1,072.3% YoY increase [12] - The UHV industry is expected to maintain high prosperity during the 15th Five-Year Plan period, with an average of 3-4 DC UHV lines expected to start construction annually [12] ESG Performance - The company has an ESG score of 3.0-3.0-4.0, with strengths in governance and environmental initiatives [2][14]