NARI-TECH(SH:600406) Great Wall Securities·2024-04-30 08:32Investment Rating - The investment rating for the company is "Buy" with an expectation of stock price increase relative to the industry index by over 15% in the next six months [4][14]. Core Views - The company has demonstrated robust growth in both domestic and international operations, achieving a revenue of 51.573 billion yuan in 2023, a year-on-year increase of 10.13%, and a net profit of 7.184 billion yuan, up 11.44% year-on-year [3][8]. - The establishment of two wholly-owned subsidiaries aims to expand into key strategic areas such as IT infrastructure and renewable energy, aligning with national development priorities [8]. - The company has a strong order backlog of 49.852 billion yuan, with new orders signed amounting to 27.427 billion yuan, indicating a healthy growth trajectory [3][8]. Financial Performance Summary - Revenue and Profitability: - 2023 revenue was 51.573 billion yuan, with a net profit of 7.184 billion yuan, reflecting a growth of 10.13% and 11.44% respectively [2][3]. - The company expects revenues to grow to 58.082 billion yuan in 2024, with net profits projected at 8.144 billion yuan [2][8]. - Segment Performance: - Smart grid revenue was 25.635 billion yuan, up 2.57%; digital energy integration revenue was 11.134 billion yuan, up 21.73%; low-carbon energy revenue was 9.638 billion yuan, up 33.47% [3]. - Cost Management: - Sales, management, and R&D expenses were 2.085 billion yuan, 1.267 billion yuan, and 2.712 billion yuan respectively, showing increases of 18.59%, 10.78%, and 13.92% year-on-year [3]. Future Outlook - The company is expected to continue its growth trajectory with projected revenues of 67.002 billion yuan and net profits of 9.110 billion yuan by 2025 [2][8]. - The establishment of subsidiaries is anticipated to enhance the company's capabilities in emerging sectors, potentially driving further revenue growth [8].