Shenzhen Honor Electronic (SZ:300870) Tebon Securities·2024-04-29 14:30Investment Rating - The report maintains a "Buy" rating for the company, Eurotech (300870.SZ) [8] Core Insights - The company reported a revenue of 2.87 billion yuan in 2023, a year-on-year increase of 6.17%, and a net profit attributable to shareholders of 196 million yuan, up 116.46% year-on-year [4] - In Q1 2024, the company achieved a revenue of 696 million yuan, representing a year-on-year growth of 34.06%, and a net profit attributable to shareholders of 31.16 million yuan, a significant increase of 1703.04% year-on-year [4] - The power adapter business, while facing a 9.51% decline in revenue to 1.594 billion yuan in 2023, saw an improvement in gross margin by 4.11 percentage points to 20.10% due to product structure enhancement and operational efficiency [2] - The server power supply segment experienced a revenue growth of 35.91% to 811 million yuan in 2023, with high-power server power supply revenue skyrocketing by 1097.30% to 123 million yuan, now accounting for 15.11% of server power supply revenue [5] Financial Performance - The company adjusted its revenue forecasts for 2024 to 3.564 billion yuan, 4.372 billion yuan for 2025, and 5.244 billion yuan for 2026, with net profit forecasts of 251 million yuan, 308 million yuan, and 377 million yuan respectively [11] - The projected P/E ratios for 2024, 2025, and 2026 are 18.56, 15.12, and 12.33 respectively, indicating a favorable valuation outlook [11] - The gross margin is expected to improve gradually, reaching 20.1% in 2024 and 20.8% by 2026 [22] Market Performance - The company’s stock price has shown resilience, with a reported absolute increase of 4.41% in September 2023 and a relative increase of 1.48% compared to the CSI 300 index [3] - The company’s performance in Q4 2023 was notable, achieving a record high quarterly revenue of 804 million yuan, a year-on-year increase of 10.83% [10]