LSHEC(SH:603169)2024-05-07 01:30Investment Rating - The report maintains a "Buy" rating, expecting the company's stock price to outperform the benchmark index by over 20% in the next 6-12 months [1][14]. Core Views - The company reported a 12.62% decline in net profit for 2023, with total new orders amounting to 6.395 billion RMB, a decrease of 4.68% year-on-year. However, the first quarter of 2024 showed a 9.16% increase in profit compared to the same period in 2023 [17]. - The traditional energy equipment segment benefited from equipment upgrades, achieving a revenue of 2.835 billion RMB in 2023, a year-on-year increase of 22.19% [17]. - The new energy equipment segment faced challenges, with a revenue decline of 30.28% in 2023, but the hydrogen energy business is progressing steadily, with new orders reaching 517 million RMB, a 155% increase year-on-year [17]. Summary by Sections Financial Performance - The company’s main revenue for 2022 was 4,980 million RMB, with a projected increase to 6,448 million RMB in 2024, reflecting a growth rate of 24.9% [6][20]. - The EBITDA for 2023 is reported at 383 million RMB, with projections of 565 million RMB for 2024 [6]. - The net profit attributable to the parent company is expected to rise from 154 million RMB in 2023 to 236 million RMB in 2024, indicating a growth rate of 53.4% [6][20]. Earnings Per Share (EPS) and Valuation - The latest diluted EPS is projected to be 0.12 RMB in 2023, increasing to 0.18 RMB in 2024, with a corresponding P/E ratio of 29.3 for 2024 [6][20]. - The report adjusts the EPS forecasts for 2024-2026 to 0.18, 0.23, and 0.30 RMB respectively, with a maintained "Buy" rating [17]. Market Context - The report highlights the company's strategic focus on optimizing its industrial structure and advancing its hydrogen energy and storage initiatives [5][17]. - The traditional energy sector is expected to benefit from government policies promoting high-end and low-carbon development in coal chemical industries [17].