NARI-TECH(SH:600406)2024-05-06 02:30Investment Rating - The report maintains an "OUTPERFORM" rating for NARI Technology [2][20]. Core Views - NARI Technology's revenue and net profit growth rates meet expectations, with a revenue of RMB 51.57 billion in 2023, a year-on-year increase of 10.13%, and a net profit of RMB 7.184 billion, a year-on-year increase of 11.44%. In Q1 2024, revenue reached RMB 7.7 billion, up 24.25% year-on-year, and net profit was RMB 596 million, up 13.7% year-on-year [16][20]. - The company is expected to benefit from the high prosperity of ultra-high voltage (UHV) construction, with plans to start five DC and two AC UHV lines in 2024 [18][20]. - NARI's off-grid business is developing well, with new contracts signed worth RMB 58.287 billion, a year-on-year increase of 12.64%, and a recovery in international business [19][20]. Financial Performance - The comprehensive gross profit margin was 26.80% in 2023, slightly down by 0.24 percentage points year-on-year, while the gross profit margin for power grid dispatch automation increased by 2.07 percentage points to 28.91% [16][20]. - R&D expenses were RMB 2.712 billion in 2023, up 13.92% year-on-year, exceeding the revenue growth rate [17][20]. - The company forecasts revenues of RMB 58.18 billion, RMB 65.77 billion, and RMB 73.82 billion for 2024, 2025, and 2026, respectively, with net profits of RMB 8.3 billion, RMB 10 billion, and RMB 11.6 billion [20].