CSB(SZ:300718) Caixin Securities·2024-05-06 05:00Investment Rating - The report maintains a "Buy" rating for the company Changsheng Bearing (300718.SZ) [1][11]. Core Views - The company achieved significant growth in 2023, with revenue of 1.105 billion yuan, up 3.18% year-on-year, and a net profit attributable to shareholders of 242 million yuan, up 137.26% year-on-year [7]. - The report highlights the recovery of profitability, with a gross margin of 35.81%, an increase of 6.43 percentage points year-on-year, and a net margin of 21.88%, up 12.45 percentage points year-on-year [7]. - The company is expected to benefit from the recovery in downstream demand, particularly in the wind power sliding bearing segment [4][10]. Financial Data Summary - Current Price: 15.22 yuan [4] - Market Capitalization: 4,548.80 million yuan [4] - Revenue Forecast: - 2024E: 1.35 billion yuan - 2025E: 1.65 billion yuan - 2026E: 2.05 billion yuan [10] - Net Profit Forecast: - 2024E: 290 million yuan - 2025E: 351 million yuan - 2026E: 429 million yuan [10] - Earnings Per Share (EPS) Forecast: - 2024E: 0.97 yuan - 2025E: 1.17 yuan - 2026E: 1.44 yuan [10] - Price-to-Earnings (P/E) Ratio Forecast: - 2024E: 15.32 - 2025E: 12.68 - 2026E: 10.36 [10] Performance Metrics - The company reported a stable performance in Q4 2023, with revenue of 286 million yuan, up 6.00% year-on-year, and a net profit of 64 million yuan, up 323.42% year-on-year [8]. - The report indicates a decrease in expense ratio in Q1 2024, with a total expense ratio of 11.86%, down 2.28 percentage points year-on-year [8]. - The three main product categories showed an increase in gross margin and unit price, with self-lubricating bearings achieving a gross margin of 49.31%, up 7.52 percentage points year-on-year [9].