HAILIANG(SZ:002203) Minsheng Securities·2024-05-05 10:17Investment Rating - The report maintains a "Recommended" rating for the company [4][30]. Core Views - The company achieved a revenue of 755.89 billion yuan in 2023, a year-on-year increase of 2.33%, while the net profit attributable to shareholders decreased by 7.46% to 11.18 billion yuan [2][12]. - The company expects to see improvements in profitability due to the recovery of processing fees and continuous capacity expansion, particularly in the copper foil segment, which is anticipated to turn profitable [4][30]. Summary by Sections 1. Event Overview - The company released its 2023 annual report and the 2024 Q1 report, showing a significant drop in Q4 2023 revenue and net profit, but a recovery in Q1 2024 with a revenue of 218.52 billion yuan, up 12.2% year-on-year [2][12]. 2. Performance Analysis - In 2023, the company maintained high production and sales volumes, with copper tube revenue at 412 billion yuan, accounting for 54.4% of total revenue, and a significant increase in copper foil revenue by 893.50% to 7.35 billion yuan [3][14]. - The gross profit margin for copper tubes remained the highest at 80.4%, while copper foil faced losses due to low capacity utilization and high competition [3][21]. 3. Profit Forecast and Investment Recommendations - The company is projected to achieve net profits of 13.40 billion yuan, 15.66 billion yuan, and 18.19 billion yuan from 2024 to 2026, with corresponding EPS of 0.67, 0.78, and 0.91 yuan [4][30]. - The report highlights the potential for increased profitability as the competitive landscape improves and processing fees rise, alongside ongoing capacity expansion [4][30].