Kinwong(SH:603228) ZHONGTAI SECURITIES·2024-04-29 06:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price compared to the benchmark index within the next 6 to 12 months [7]. Core Insights - The company reported a revenue of 10.757 billion yuan in 2023, with a year-over-year growth of 2.31%. However, the net profit attributable to the parent company was 936 million yuan, reflecting a year-over-year decline of 12.16% [4][11]. - In Q1 2024, the company achieved a revenue of 2.743 billion yuan, marking a year-over-year increase of 17.16% and a quarter-over-quarter decrease of 8.72%. The net profit attributable to the parent company was 318 million yuan, showing a significant year-over-year growth of 50.3% [4][11]. - The company is actively expanding its high-end product offerings in sectors such as automotive electronics and communication, which is expected to drive future growth [10][11]. Financial Performance Summary - 2023 Financials: Revenue was 10.757 billion yuan, with a net profit of 936 million yuan. The gross margin was 23.17%, and the net margin was 8.47% [4]. - 2024 Projections: Expected net profits for 2024, 2025, and 2026 are 1.152 billion yuan, 1.425 billion yuan, and 1.768 billion yuan, respectively [11]. - R&D Investment: The company invested 601 million yuan in R&D in 2023, a year-over-year increase of 10.03%, focusing on high-end products and new market segments [5][10]. Market Position and Strategy - The company is navigating a challenging PCB industry landscape characterized by weak downstream demand and intensified competition. However, it is leveraging its strategic focus on high-growth areas to maintain stable revenue growth [10]. - The company is expected to benefit from the release of high-end production capacities and an optimized product structure, which should enhance profitability [10][11].