JIULI Hi-tech(002318) 民生证券·2024-04-30 10:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of April 29, 2024, at 23.96 yuan [4]. Core Insights - The company achieved a revenue of 8.568 billion yuan in 2023, representing a year-on-year growth of 31.1%, and a net profit attributable to shareholders of 1.489 billion yuan, up 15.6% year-on-year [1][4]. - In Q1 2024, the company reported a revenue of 2.389 billion yuan, a 42.3% increase year-on-year, and a net profit of 328 million yuan, reflecting a 41% year-on-year growth [1][2]. - The company is focusing on expanding high-end production capacity, with several projects nearing completion that will enhance profitability [3]. Financial Performance - In 2023, the company sold 61,400 tons of seamless pipes, a 14.82% increase year-on-year, and 65,000 tons of welded pipes, a 6.72% increase year-on-year [2]. - The gross profit margin for 2023 was 26.18%, an increase of 0.90 percentage points year-on-year, with specific margins for seamless and welded pipes at 28.36% and 24.84%, respectively [2]. - The company aims for total sales of approximately 182,900 tons of finished steel pipes and 9,600 tons of pipe fittings in 2024 [2]. Future Outlook - The company is positioned as one of the few in China capable of using advanced extrusion processes, which enhances material yield and product quality [3]. - The production capacity includes 200,000 tons of industrial finished pipes, 15,000 tons of pipe fittings, and 26,000 tons of alloy materials annually [3]. - Projects such as the "Annual Production of 5,500 km Precision Pipe Project" and "10 Million Tons Aerospace Materials and Products Project" are expected to contribute significantly to net profits [3]. Earnings Forecast - The projected net profits for 2024, 2025, and 2026 are 1.422 billion yuan, 1.670 billion yuan, and 1.884 billion yuan, respectively, with corresponding PE ratios of 16, 14, and 12 times [3][4].