Investment Rating - The report maintains a "Buy - A" investment rating for the company, with a target price of 15.9 CNY based on a 14x PE valuation for 2024 [18][21]. Core Insights - The company reported a revenue of 268.2 million CNY in 2023, a year-on-year increase of 12.23%, and a net profit of 62 million CNY, up 8.55% from the previous year [2][21]. - The first quarter of 2024 saw a decline in revenue to 38 million CNY, down 14.44% year-on-year, and a net profit of 8 million CNY, down 16.25% [2]. - The company specializes in ultrasonic heat meters and water meters, contributing 44.71% and 29.53% to total revenue, respectively [3]. - Recent government policies are expected to accelerate the company's performance, particularly in the energy-saving and smart water management sectors, providing growth opportunities for its products and management systems [4][17]. Financial Summary - The company forecasts revenues of 316 million CNY, 363 million CNY, and 409 million CNY for 2024, 2025, and 2026, respectively [6][22]. - The projected net profits for the same years are 69.3 million CNY, 79.7 million CNY, and 94.9 million CNY [22]. - The company’s net profit margin is expected to stabilize around 22% to 23% over the next few years [22]. - The report indicates a significant increase in the company's total assets from 513.8 million CNY in 2022 to an estimated 850.6 million CNY by 2026 [22].
政策利好加速业绩增厚，智慧解决方案深入发展赋能