ITG(SH:600755) ZHONGTAI SECURITIES·2024-05-06 02:00Investment Rating - The report assigns a "Buy" rating for the company, expecting a relative increase in stock price of over 15% within the next 6 to 12 months [12]. Core Views - The company has announced an unexpected increase in dividends, indicating a focus on shareholder returns. The proposed cash dividend per share is 0.5 yuan, which represents a significant increase compared to the previous year [10]. - The company reported a revenue of 468.25 billion yuan for 2023, a decrease of 10.29% year-on-year, while the net profit attributable to shareholders was 19.15 billion yuan, down 46.72% year-on-year [10]. - The company is expected to see a recovery in demand, with projected revenue growth of 5% in 2024 and 8% in 2025 [10]. Financial Summary - Revenue Forecast: - 2023: 468,247 million yuan - 2024E: 491,696 million yuan (5% growth) - 2025E: 530,978 million yuan (8% growth) - 2026E: 573,401 million yuan (8% growth) [3][10] - Net Profit Forecast: - 2023: 19,150 million yuan - 2024E: 22,110 million yuan (15% growth) - 2025E: 25,030 million yuan (13% growth) - 2026E: 28,820 million yuan (15% growth) [3][10] - Earnings Per Share (EPS): - 2023: 0.87 yuan - 2024E: 1.00 yuan - 2025E: 1.14 yuan - 2026E: 1.31 yuan [10] - Return on Equity (ROE): - 2023: 5% - 2024E: 5% - 2025E: 6% - 2026E: 6% [10] - Debt and Equity: - Total liabilities for 2023 are projected at 74,503 million yuan, with total equity at 38,624 million yuan [3]. - Market Price: The current market price is 7.38 yuan, with a market capitalization of 16,267 million yuan [10]. Investment Highlights - The company is focusing on optimizing its product structure and expanding high-value-added categories, which is expected to support future growth [10]. - The supply chain management business is anticipated to grow, despite a decrease in revenue, with an improvement in gross margins [10]. Conclusion - The report indicates a cautious but optimistic outlook for the company, with expectations of recovery in demand and a focus on shareholder returns through increased dividends [10][12].