NANCAL(SH:603859) Tai Ping Yang·2024-05-08 03:08Investment Rating - The report assigns a "Buy" rating to the company, with an upward adjustment [1][4]. Core Insights - The company is experiencing accelerated implementation of self-developed products and continuous improvement in operational efficiency [1][10]. - In 2023, the company achieved a revenue of 1.41 billion yuan, representing a year-on-year growth of 14.1%, and a net profit attributable to shareholders of 220 million yuan, up 10.71% year-on-year [14]. - The company has optimized its internal organizational structure, leading to a decrease in sales and management expenses by 0.23 and 1.5 percentage points respectively [3][10]. - The company reported a significant increase in operating cash flow, reaching 315 million yuan in 2023, a year-on-year growth of 183.86% [3]. Financial Projections - Expected revenues for 2024, 2025, and 2026 are projected to be 1.85 billion yuan, 2.29 billion yuan, and 2.77 billion yuan respectively [4][16]. - The net profit attributable to shareholders is forecasted to be 322 million yuan, 405 million yuan, and 507 million yuan for the years 2024, 2025, and 2026 respectively [4][16]. - The company’s gross margin for 2023 was reported at 50.23%, an increase of 6.17 percentage points year-on-year [14]. Business Performance - The company’s cloud products and services revenue reached 430 million yuan, a year-on-year increase of 109.23% [14]. - The industrial engineering and electrical products and services generated 428 million yuan, reflecting a growth of 180% year-on-year [14]. - The company has successfully integrated AI capabilities into its offerings, generating additional revenue from AI applications [14]. Efficiency Metrics - The company’s per capita income and profit increased by 5.5% and 2.34% respectively, with per capita income reaching 991,600 yuan and per capita profit at 154,400 yuan [3]. - The company’s operating efficiency has improved, with sales and management expenses as a percentage of revenue decreasing [3]. Market Position - The company is positioned to replace imported equipment with its high-end products, particularly in the LNG electric drive high-voltage frequency converter segment [15]. - The report indicates a strong outlook for the company, with expectations of continued growth driven by self-developed products and market demand [1][10].