GUOMAO REDUCER(SH:603915) Southwest Securities·2024-04-29 11:30Investment Rating - The report maintains a "Buy" rating for the company [3][8]. Core Insights - The company reported a revenue of 2.66 billion yuan in 2023, a decrease of 1.35% year-on-year, with a net profit attributable to shareholders of 396 million yuan, down 4.44% year-on-year [3][4]. - The company anticipates a gradual improvement in demand, with projected net profits for 2024-2026 expected to grow at a compound annual growth rate (CAGR) of 18% [8][11]. Revenue and Profitability - The revenue from gear reducers was 2.052 billion yuan, a slight increase of 2.20% year-on-year, while the revenue from cycloidal gear reducers decreased by 10.85% to 385 million yuan [1]. - The gross profit margin for the company in 2023 was 26.01%, a decrease of 0.73 percentage points year-on-year, with the gear reducer margin at 25.26%, down 1.57 percentage points [4]. Business Segments - The company achieved breakthroughs in various sectors with its engineering planetary gear reducers, including significant orders in offshore engineering and wind power [1]. - The GNORD gear reducers, which are part of the high-end segment, saw a revenue decline of 15.30% to 121 million yuan, primarily due to a downturn in the lithium battery industry [1][15]. Future Projections - Revenue is expected to recover with projected growth rates of 17.20% in 2024, 14.16% in 2025, and 14.44% in 2026 [9]. - The company is expected to maintain a gross margin of around 27.2% in the coming years, with specific segments like GNORD gear reducers projected to grow at 30% annually [11][15].