GONGNIU(SH:603195) Guoxin Securities·2024-04-29 14:02Investment Rating - The investment rating for the company is "Buy" [1][3] Core Views - The company has demonstrated robust revenue growth and significant improvement in profitability, with a proposed cash dividend of 31 CNY per 10 shares, totaling 2.76 billion CNY, resulting in a cash dividend rate of 71.4% [1] - The traditional business segments remain strong, while the new energy sector is experiencing rapid growth, with a revenue increase of 148.6% in 2023 [1] - The company is expected to maintain strong performance in the coming years, with adjusted profit forecasts for 2024-2026 showing a year-on-year growth of 16%, 15%, and 15% respectively [1] Revenue and Profitability - In 2023, the company achieved a revenue of 15.69 billion CNY, representing an 11.5% increase, and a net profit of 3.87 billion CNY, up 21.4% [2][11] - The gross margin for 2023 was 43.2%, an increase of 5.2 percentage points, while the net margin was 24.7%, up 2.0 percentage points [1][11] - The first quarter of 2024 saw a revenue of 3.80 billion CNY, a 14.1% increase, and a net profit of 930 million CNY, up 26.3% [1][2] Business Segments - The electrical connection segment generated 7.39 billion CNY in revenue, with a gross margin of 40.9% [1] - The intelligent electrical lighting segment reported 7.90 billion CNY in revenue, with a gross margin of 45.8% [1] - The new energy business achieved 380 million CNY in revenue, with a gross margin of 34.2% [1] Financial Projections - The company forecasts net profits of 4.47 billion CNY, 5.15 billion CNY, and 5.95 billion CNY for 2024, 2025, and 2026 respectively [1][11] - The diluted EPS is projected to be 5.02 CNY, 5.78 CNY, and 6.67 CNY for the same years, with corresponding PE ratios of 23, 20, and 18 times [1][11]