Wujin Stainless(603878) 民生证券·2024-05-03 01:32Investment Rating - The report maintains a "Recommended" rating for the company [7][39][77] Core Views - The company demonstrated strong performance in 2023 with a revenue increase of 24.21% year-on-year, reaching 3.516 billion yuan, and a net profit growth of 63.43%, amounting to 352 million yuan [8][24][39] - In Q1 2024, the company experienced a revenue decline of 15.89% year-on-year, totaling 730 million yuan, and a net profit decrease of 6.33% year-on-year, amounting to 68 million yuan [6][24][70] - The company is expected to benefit from the increasing demand for thermal power boiler pipes and the continuous release of new production capacity, projecting net profits of 441 million yuan, 490 million yuan, and 492 million yuan for 2024-2026 [39][77] Summary by Sections 1. Event Overview - The company released its 2023 annual report and Q1 2024 report, showing significant growth in 2023 with a revenue of 3.516 billion yuan and a net profit of 352 million yuan [7][8][24] 2. Profitability Analysis - The gross profit margin improved, reaching 17.12% in 2023, an increase of 2.82 percentage points, and further increased to 18.35% in Q1 2024 [24][65][57] - The sales volume of seamless pipes increased by 10.65% in 2023, while the sales volume of welded pipes rose by 21.87% [18][65] 3. Future Core Highlights - The demand for thermal power boiler pipes is expected to gradually release, supported by government initiatives to increase coal power capacity [39][74] - The company is expanding its overseas market presence and upgrading its product structure, including a new precision pipe production line [39][63] 4. Financial Forecast and Investment Suggestions - The company is projected to achieve a revenue of 4.039 billion yuan in 2024, with a net profit of 441 million yuan, reflecting a growth rate of 14.9% [40][81] - The report suggests that the company will maintain a competitive edge due to its strong market position and ongoing capacity expansion [39][77]