Secote co.ltd(603283) 东吴证券·2024-05-04 13:30Investment Rating - The report maintains a "Buy" rating for the company, considering its strong competitive position in the consumer electronics sector and growth potential in the semiconductor field [6][50]. Core Insights - The company achieved a revenue of 4.445 billion yuan in 2023, representing a year-on-year increase of 52%. The net profit attributable to shareholders was 690 million yuan, up 124% year-on-year [4][11]. - The company has a robust order backlog, leading to an upward revision of net profit forecasts for 2024 and 2025 to 840 million yuan and 970 million yuan, respectively [6][50]. - The gross margin for 2023 was 46.92%, an increase of 6.82 percentage points year-on-year, indicating improved profitability [19][45]. Revenue and Profitability - Total revenue for 2023 was 4.445 billion yuan, with a significant contribution from consumer electronics equipment, which generated 4.12 billion yuan, a 68.19% increase year-on-year [4][11]. - The net profit attributable to shareholders for 2023 was 690 million yuan, reflecting a 124% increase year-on-year, while the net profit excluding non-recurring items was 670 million yuan, up 132% [4][11]. Cash Flow and Inventory Management - As of the end of 2023, the company's contract liabilities decreased to 430 million yuan, down 13% year-on-year, and inventory was 1.22 billion yuan, down 25% [5][24]. - The net cash flow from operating activities for 2023 was 1.37 billion yuan, a substantial increase of 282% year-on-year [5][24]. Market Position and Growth Potential - The company is positioned as a leader in consumer electronics and is expanding into semiconductor and renewable energy sectors. The demand for equipment related to new technologies, such as periscope cameras and smart glasses, is expected to drive growth [14][50]. - The acquisition of Japanese Optima in 2019 has allowed the company to enter the semiconductor measurement and testing equipment market, enhancing its competitive edge [14][50].