JJHB(SH:603279) Southwest Securities·2024-04-29 14:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 20% compared to the relevant market index within the next six months [12][21]. Core Insights - The company reported a revenue of 6.25 billion yuan in 2023, representing a year-on-year growth of 10.0%, and a net profit attributable to shareholders of 1.01 billion yuan, up 20.9% year-on-year [1]. - In Q1 2024, the company achieved a revenue of 1.51 billion yuan, a 2.7% increase year-on-year, with a net profit of 230 million yuan, reflecting a 6.7% growth [1]. - The overseas market is expected to provide significant growth potential, with the company focusing on expanding its presence internationally, where the market size is estimated to be 2-3 times larger than the domestic market [2]. - The company is also actively developing its supporting equipment and accessories business, which is anticipated to become a second growth curve for its performance [2]. Financial Performance - The company’s comprehensive gross margin for 2023 was 31.8%, an increase of 1.0 percentage points year-on-year, primarily due to low raw material prices [13]. - The net profit margin for 2023 was 16.1%, up 1.5 percentage points year-on-year, while the Q1 2024 net profit margin was 15.2%, an increase of 0.6 percentage points [13]. - The company’s revenue is projected to grow from 6.25 billion yuan in 2023 to 8.16 billion yuan by 2026, with a compound annual growth rate (CAGR) of 11% for net profit over the same period [14][19]. Market Position - The company holds a domestic market share of over 40% in the filter press segment, but its current overseas market share is low, indicating substantial room for growth [2]. - The company’s product segments, including filter plates and filter cloths, have shown significant growth, with increases of 11.6% and 36.5% respectively in 2023 [13]. Future Projections - The company is expected to maintain stable growth in its filter press business, with gross margins projected to remain around 29.5% from 2024 to 2026 [16]. - The accessory business is anticipated to grow steadily, with revenue projections of 420 million yuan in 2024, increasing to 1.22 billion yuan by 2026 [18]. - The supporting equipment segment is expected to see a revenue increase from 17.64 million yuan in 2024 to 23.48 million yuan by 2026, with a gross margin of 30% [18].