ZAISHENG TECHNOLOGY(SH:603601) Tianfeng Securities·2024-04-30 01:32Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price not specified [1]. Core Views - The company reported a revenue of 1.66 billion yuan in 2023, a year-on-year increase of 2.30%, but the net profit attributable to the parent company fell by 74.76% to 38.13 million yuan [22]. - The company is expected to see a gradual recovery in profitability as new projects come online and high-value products increase their revenue share [22]. - The company maintained a high dividend payout ratio of 80% in 2023 and plans to distribute dividends in mid-2024 [22]. Financial Data and Valuation - Revenue projections for 2024E are 1.67 billion yuan, with a growth rate of 0.77%, and for 2025E, it is projected to reach 2.07 billion yuan, reflecting a growth rate of 23.89% [3]. - The EBITDA for 2023 is reported at 326.39 million yuan, with a decline expected in 2024E to 307.93 million yuan [3]. - The net profit attributable to the parent company is projected to recover to 115.95 million yuan in 2024E, with significant growth expected in subsequent years [3]. - The company’s price-to-earnings (P/E) ratio for 2024E is 28.72, while the price-to-book (P/B) ratio is 1.46 [3]. Market Performance - The company’s stock price has shown a significant decline of 45% from May 2023 to January 2024, compared to the Shanghai and Shenzhen 300 index [4]. - The company’s total market capitalization is approximately 3.33 billion yuan, with a current price of 3.26 yuan per share [1]. Growth Potential - The company is expected to benefit from the gradual release of production capacity from its fundraising projects, which will enhance the revenue contribution from high-margin products [22]. - The clean air segment reported a revenue decline of 3.64% in 2023, while the energy-efficient segment saw a growth of 13.34%, indicating potential for future growth in specific areas [22].