SHAREATE(SH:688257) Southwest Securities·2024-04-30 12:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 20% in the next six months [19][20]. Core Insights - The company reported a revenue of 1.55 billion yuan in 2023, a year-on-year increase of 30.9%, with a net profit attributable to shareholders of 160 million yuan, up 10.9% year-on-year [1]. - The company has expanded its product line and international market presence, enhancing growth momentum through acquisitions and establishing subsidiaries in Canada, the USA, and South Korea [2]. - The overall gross margin for 2023 was 32.5%, an increase of 2.6 percentage points compared to the previous year, reflecting improved operational efficiency [19]. Financial Performance - The company’s operating expenses increased, leading to a slight decline in net profit margin to 12.1% in 2023, down 1.9 percentage points year-on-year [5]. - For Q4 2023, the company achieved a revenue of 390 million yuan, a year-on-year increase of 28.4%, but the net profit decreased by 3.3% year-on-year [1]. - The company’s revenue is projected to grow at a compound annual growth rate (CAGR) of 23% from 2024 to 2026, with net profits expected to reach 200 million yuan in 2024, 250 million yuan in 2025, and 310 million yuan in 2026 [20]. Market Expansion and Product Development - The company has extended its product offerings in hard alloy tools and has made strategic acquisitions to enhance its product lines in various sectors, including mining and oil extraction [2]. - The company’s international sales have seen an 18.7% increase, contributing to the overall revenue growth [19]. Future Projections - The company anticipates a revenue growth rate of 18.91% in 2024, followed by 21.07% in 2025 and 19.30% in 2026 [6]. - The projected earnings per share (EPS) are expected to rise from 1.25 yuan in 2024 to 2.36 yuan in 2026 [6].