短期承压不改长增底色，持续挑战走向卓越

Investment Rating - The investment rating for the company is "Buy" with a target price set above the current price of 51.36 CNY [3] Core Views - The company reported steady performance in its annual and quarterly reports, with 2023 revenue reaching 8.985 billion CNY, a year-on-year increase of 9.61%, and a net profit of 2.499 billion CNY, up 6.66% year-on-year [1][2] - The company is diversifying its product offerings and markets, with significant growth in new products outside the traditional engineering machinery sector, which are showing higher profitability [2] - The company is also expanding internationally, with a hydraulic parts production base in Mexico expected to begin trial production in Q2, and a nearly 20% sales growth in its European subsidiary [2] Financial Performance Summary - In Q4 2023, the company achieved revenue of 2.64 billion CNY, a year-on-year increase of 15.95%, and a net profit of 745 million CNY, up 25.56% year-on-year [1] - For Q1 2024, the company reported revenue of 2.362 billion CNY, a decrease of 2.7% year-on-year, and a net profit of 602 million CNY, down 3.77% year-on-year [1] - The company’s gross margin for 2023 was 41.90%, with a net margin of 27.87% [1] Profit Forecast - The profit forecast for the company has been adjusted, with expected net profits for 2024, 2025, and 2026 projected at 2.764 billion CNY, 3.281 billion CNY, and 3.948 billion CNY respectively, corresponding to P/E ratios of 24.91, 20.99, and 17.44 [2][5]