Kewell(SH:688551) China Post Securities·2024-05-07 01:00Investment Rating - The report maintains a "Buy" rating for the company [5][9]. Core Views - The company is expected to benefit from the domestic substitution of testing power supplies, supported by standardization and distribution channel development, while also likely to gain from the improving hydrogen energy industry [1]. - In 2023, the company achieved a revenue of 530 million yuan, a year-on-year increase of 41.0%, and a net profit attributable to the parent company of 120 million yuan, up 88.1% year-on-year [7]. - The testing power supply business generated revenue of 360 million yuan in 2023, with a gross margin of 55.73%, indicating steady growth prospects [7]. Financial Summary - The company reported a revenue of 1.1 billion yuan for Q1 2024, with a year-on-year decrease of 17.0% in net profit [7]. - The projected revenues for 2024, 2025, and 2026 are 800 million yuan, 1.1 billion yuan, and 1.4 billion yuan, respectively, with corresponding net profits of 180 million yuan, 250 million yuan, and 340 million yuan [17]. - The company's gross margin for 2023 was 53.9%, while the net margin was 21.9% [7]. Business Development - The company is focusing on standardizing high-power products and enhancing distribution channels for low-power products, which is expected to drive continuous growth in the testing power supply business [7]. - The hydrogen energy sector is projected to grow significantly, with the sales of hydrogen fuel cell vehicles in China expected to increase from 3,400 units in 2022 to 412,400 units by 2030, reflecting a CAGR of 82.2% [7].