DAYUAN PUMP(SH:603757) Tai Ping Yang·2024-05-06 02:30Investment Rating - The report maintains a "Buy" rating for Dayuan Pump Industry (603757) with a target price based on the last closing price of 21.81 [1][4]. Core Views - The report highlights an improvement in gross margin for Q1 2024 and significant revenue growth in chemical shield pumps for 2023, with total revenue reaching 1.879 billion yuan in 2023, a year-on-year increase of 11.98% [1][4]. - The company is expected to benefit from the recovery in the pump industry, particularly in industrial shield pumps, with projected net profits for 2024-2026 being 320 million, 355 million, and 392 million yuan respectively [4][5]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 1.879 billion yuan, with a net profit of 285 million yuan, reflecting a year-on-year growth of 9.45% [1][5]. - For Q1 2024, total revenue was 277 million yuan, down 23.51% year-on-year, with a net profit of 41 million yuan, a decrease of 32.23% [1][4]. Product Performance - Revenue from various product lines in 2023 included: hot water circulation shield pumps (857 million yuan, +14.91%), small submersible pumps (321 million yuan, -0.70%), chemical shield pumps (200 million yuan, +42.27%), land pumps (198 million yuan, +23.39%), and well submersible pumps (177 million yuan, -0.86%) [1][4]. - The report notes that the chemical shield pump segment saw significant growth, particularly in exports, driven by increased demand and improved company reputation [1][4]. Future Projections - The company is projected to see continued revenue growth, with expected revenues of 2.095 billion, 2.315 billion, and 2.540 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profit growth rates of 12.09%, 10.94%, and 10.38% [5][4]. - The report anticipates that the company will continue to expand its product offerings and downstream applications, contributing to sustained revenue growth [4][5].