GUOMAO REDUCER(603915) 东吴证券·2024-04-29 08:00Investment Rating - The report maintains a rating of "Accumulate" for the company, indicating a positive outlook for the stock over the next six months [7][20]. Core Views - The company's performance in 2023 showed resilience despite a slight decline in revenue and net profit due to weakened downstream demand. Revenue was 2.66 billion yuan, down 1.35% year-on-year, while net profit attributable to shareholders was 396 million yuan, down 4.44% year-on-year [7]. - The company is expected to see a recovery in profit margins in 2024, driven by effective cost control and gradual industry recovery. The gross profit margin for 2023 was 26.0%, a decrease of 0.73 percentage points year-on-year [7]. - The company is expanding its business into specialized and mechatronic fields, establishing a platform-based business layout that includes eight major sectors, which is anticipated to open up growth opportunities [7]. Financial Performance Summary - In 2023, the company achieved a revenue of 2.66 billion yuan, with a slight decline in net profit. The fourth quarter of 2023 saw a revenue of 650 million yuan, down 2.04% year-on-year, but net profit increased by 5.41% year-on-year [7]. - The first quarter of 2024 reported a revenue of 585 million yuan, down 6.48% year-on-year, while net profit increased by 19.59% year-on-year, attributed to a high base in the previous year and slow recovery in industry demand [7]. - The company’s gross profit margin for 2023 was 26.0%, with a net profit margin of 14.8%. The first quarter of 2024 saw a gross profit margin of 23.0% and a net profit margin of 11.0% [7]. Business Outlook - The company is focusing on cost control and efficiency improvements, with a significant reduction in rework rates and after-sales service metrics. The industrial gearbox segment saw a sales volume increase of approximately 20% year-on-year in 2023 [7]. - The company has successfully relocated its precision transmission manufacturing base to its headquarters, enhancing synergy with its main business and preparing for future growth [7]. - Profit forecasts for 2024 and 2025 have been adjusted to 495 million yuan and 563 million yuan, respectively, with a projected net profit of 648 million yuan for 2026 [7][15].