LZJT(SZ:300428) Huafu Securities·2024-04-29 07:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 27.11 CNY based on a 20x PE for 2024 [1][2]. Core Insights - The company achieved a revenue of 23.37 billion CNY in 2023, representing a year-on-year increase of 9.3%. The net profit attributable to shareholders was 610 million CNY, up 23.0% year-on-year [1]. - The sales volume of casting aluminum alloys reached 903,500 tons, a 10.2% increase year-on-year, while the sales volume of aluminum alloy wheels was 21.2 million units, up 21.3% year-on-year [1]. - The company is expected to maintain high growth in 2024, with projected revenues of 29.3 billion CNY, reflecting a growth rate of 25% [5]. Summary by Sections Financial Performance - In 2023, the company reported a net profit of 610 million CNY, with a growth rate of 23% compared to the previous year. The earnings per share (EPS) for 2023 was 0.97 CNY [5][12]. - The projected net profits for 2024, 2025, and 2026 are 850 million CNY, 990 million CNY, and 1.1 billion CNY, respectively, indicating a strong growth trajectory [5][12]. Production Capacity and Sales - The company has a casting aluminum alloy capacity of 1.6 million tons, with expectations to increase production to 1.1 million tons in 2024. The aluminum alloy wheel production is expected to reach 23.5 million units in 2024 [1]. - The company has secured multiple projects, including contracts with high-end electric vehicle manufacturers, ensuring sales volume stability [1]. Profitability Forecast - The report anticipates an increase in gross margins for aluminum alloys and wheels, with projected gross margins of 800 CNY/ton for casting aluminum alloys and 70 CNY/unit for aluminum alloy wheels in 2024 [1]. - The company’s net profit margins are expected to remain robust, with a forecasted net profit growth rate of 40.1% in 2024 [5][12].