TSC(SZ:000877) Tianfeng Securities·2024-05-07 12:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 8.84 CNY, based on a projected price-to-book (P/B) ratio of 0.75 for 2025 [3][6]. Core Views - The company achieved a total revenue of 10.738 billion CNY and a net profit attributable to shareholders of 1.965 billion CNY in 2023, representing a year-on-year decline of 19.01% and 56.74% respectively [1][2]. - The report highlights the company's ongoing efforts to reduce costs and improve efficiency, particularly in the cement sector, while also emphasizing the potential for growth in overseas markets [1][3]. - The company is focusing on a transformation strategy centered around high-end, intelligent, and green development, leveraging its advantages to accelerate international expansion [1][3]. Financial Performance Summary - In 2023, the company's cement and clinker revenue was 71.07 billion CNY, down 20% year-on-year, with sales volume decreasing by 1.4% for cement and 14.9% for clinker [1]. - The average selling price per ton of cement decreased by 59 CNY to 270 CNY, while the cost per ton fell by 50 CNY to 231 CNY, resulting in a gross profit margin of 14.3%, a slight decline of 0.07 percentage points [1][2]. - The aggregate business saw a revenue increase of 6% to 5.84 billion CNY, with sales volume rising by 24% to 14.2 million tons, indicating a potential growth area for future profits [1][2]. - The overall gross margin for the company in 2023 was 16.19%, with a net profit margin of 1.87%, down 1.96 percentage points year-on-year [1][2]. Future Projections - The report projects a net profit attributable to shareholders of 2.16 billion CNY and 2.44 billion CNY for 2024 and 2025 respectively, with a long-term target of 2.65 billion CNY by 2026 [1][2][3]. - The company plans to invest approximately 10.613 billion CNY in a new aggregate production facility, which is expected to enhance profit contributions from the aggregate business in the future [1][2].