Henglin(SH:603661) Guolian Securities·2024-04-30 16:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 50.57 CNY, based on a 13x PE for 2024 [2][7]. Core Insights - The company achieved a revenue of 8.195 billion CNY in 2023, representing a year-on-year growth of 25.78%, while the net profit attributable to shareholders was 263 million CNY, down 26.60% year-on-year [1][27]. - The cross-border e-commerce segment continues to grow rapidly, with revenue reaching 1.621 billion CNY in 2023, up 60.50% year-on-year, driven by platforms like TikTok and Amazon [1][2]. - The manufacturing segment is expected to benefit from a recovery in overseas real estate demand, with revenue projections for 2024-2026 showing significant growth [2][20]. Financial Performance Summary - In 2023, the company reported a net profit margin of 3.39%, down 1.84 percentage points from the previous year, primarily due to inventory impairment and other factors [4][31]. - The company’s operating cash flow for 2023 was 447 million CNY, reflecting a year-on-year increase of 29.10% [20]. - The projected revenues for 2024, 2025, and 2026 are 10.425 billion CNY, 12.552 billion CNY, and 14.868 billion CNY, respectively, with year-on-year growth rates of 27.21%, 20.41%, and 18.46% [2][6]. Business Segment Analysis - The ODM/OEM business generated 4.815 billion CNY in revenue in 2023, marking a 29.09% increase year-on-year, while excluding the impact of the subsidiary Yongyu, the growth rate was -9.66% [1][29]. - The company has expanded its business into the Middle East and South America, with expectations for replenishment demand to support the OEM business [1][2]. - The gross margin improved to 23.78% in 2023, an increase of 2 percentage points compared to the previous year, due to enhanced supply chain management [4][31].