donghua test(SZ:300354) Great Wall Securities·2024-04-29 05:02Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [28]. Core Views - The company has shown a recovery in Q1 2024 with a significant increase in revenue and net profit, indicating strong growth potential [2][3]. - The company is focusing on enhancing its sensor business and has made substantial investments in research and development, which is expected to drive future growth [4][8]. Financial Performance Summary - In 2023, the company achieved a revenue of 378 million yuan, a year-on-year increase of 3.03%, while the net profit was 88 million yuan, a decrease of 27.94% [2]. - For Q1 2024, the company reported a revenue of 104 million yuan, a year-on-year increase of 45.16%, and a net profit of 27 million yuan, a year-on-year increase of 165.70% [3]. - The projected revenues for 2024 to 2026 are 568 million yuan, 765 million yuan, and 959 million yuan, respectively, with corresponding net profits of 157 million yuan, 216 million yuan, and 272 million yuan [2][8]. Profitability Metrics - The company's gross profit margin for 2023 was 65.47%, with a net profit margin of 23.20% [3]. - In Q1 2024, the gross profit margin improved to 67.27%, and the net profit margin increased to 26.19% [3]. - The projected EPS for 2024 to 2026 is 1.14 yuan, 1.56 yuan, and 1.97 yuan, respectively [8]. Business Segment Performance - The company has diversified its business segments, with notable performance in the sensor production line and the development of new products aimed at emerging markets [4]. - The revenue from various business segments in 2023 included 222 million yuan from structural mechanics testing, 68 million yuan from structural safety monitoring, and 58 million yuan from electrochemical workstations, with the latter showing a significant growth of 87.41% [4].