NEWLAND(SZ:000997) Guotou Securities·2024-05-07 06:30Investment Rating - The investment rating for the company is "Buy - A" with a target price of 23.8 CNY, maintaining the rating [5]. Core Views - The company achieved a total revenue of 8.25 billion CNY in 2023, representing a year-on-year growth of 11.94%, and a net profit of 1.00 billion CNY, which is a significant increase of 362.91% [2]. - In Q1 2024, the company reported a revenue of 1.74 billion CNY, a decline of 8.34% year-on-year, while the net profit was 249 million CNY, down 16.93% year-on-year [2]. - The company’s core business segments, particularly the payment acquisition and merchant operation, showed strong performance with a revenue of 3.24 billion CNY in 2023, up 33.57% year-on-year [3]. Summary by Sections Financial Performance - In 2023, the company’s gross margin improved significantly, reaching 35.23%, an increase of 9.57 percentage points year-on-year [3]. - The company’s net profit for 2024 is projected to be 1.22 billion CNY, with revenues expected to grow to 9.26 billion CNY [12]. Business Segments - The payment acquisition and merchant operation business generated 3.24 billion CNY in 2023, with a gross margin of 31.87%, reflecting a recovery in industry fees [3]. - The smart terminal business saw a revenue of 3.20 billion CNY, primarily affected by a temporary contraction in the domestic market, while overseas operations remained strong [3]. Market Position and Strategy - The company has strengthened its competitive position in the payment acquisition sector, with a reduction in the number of payment licenses in the industry, leading to a more favorable environment for quality service providers [4]. - The company has expanded its international presence by establishing subsidiaries in regions such as Singapore, Japan, and Europe, indicating a strategic focus on overseas market growth [8]. Future Outlook - The company is expected to benefit from the recovery of domestic consumption and the ongoing optimization of its business model, which will enhance its revenue potential [9]. - The projected revenues for 2024, 2025, and 2026 are 9.26 billion CNY, 10.39 billion CNY, and 12.42 billion CNY, respectively, indicating a positive growth trajectory [12].