Kunshan Dongwei Technology (SH:688700) Soochow Securities·2024-04-29 21:30Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative price increase of 5% to 15% over the next six months [5][30]. Core Insights - The company's revenue for 2023 was 909.23 million yuan, a decrease of 10.13% year-on-year, primarily due to a decline in PCB equipment revenue, which fell by 46.80% to 360 million yuan, accounting for 39.40% of total revenue. In contrast, revenue from specialized equipment in the new energy sector increased by 111.79% to 340 million yuan, representing 37.35% of total revenue [5][14][23]. - The company's gross profit margin for 2023 was 41.72%, a slight decrease of 0.15 percentage points year-on-year, mainly due to a decline in the gross margin of PCB equipment, which was 39.4%, down 4.04 percentage points. The net profit margin was 16.65%, down 4.43 percentage points year-on-year [6][24]. - The company has seen a decrease in contract liabilities and inventory, with contract liabilities at 175 million yuan, down 36.38% year-on-year, and inventory at 398 million yuan, down 1.51% year-on-year [7][39]. Summary by Sections Revenue and Profitability - The company reported total revenue of 909.23 million yuan in 2023, with a year-on-year decline of 10.13%. The net profit attributable to shareholders was 151.43 million yuan, down 29.01% year-on-year [5][14][23]. - The first quarter of 2024 saw revenue of 197 million yuan, a decrease of 15.73% year-on-year, and a net profit of 31 million yuan, down 38.72% year-on-year [5][14]. Margin Analysis - The gross profit margin for 2023 was 41.72%, with a net profit margin of 16.65%. The first quarter of 2024 showed a gross profit margin of 39.11% and a net profit margin of 15.69% [6][24]. Future Growth Potential - The company is expected to benefit from the industrialization of composite flow battery technology, with adjusted net profit forecasts for 2024 and 2025 at 280 million yuan and 400 million yuan, respectively. The projected net profit for 2026 is 530 million yuan [5][30].