TODAYTEC(SZ:300743) Guoyuan Securities·2024-05-12 06:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% in the next six months [4][3]. Core Insights - The company achieved a revenue of 644.11 million yuan in 2023, representing a year-on-year growth of 8.17%. The net profit attributable to the parent company was 55.64 million yuan, up 58.55% year-on-year [1][3]. - The company has successfully enhanced its profitability by adjusting its product mix and increasing the sales proportion of high-margin products. The gross profit margin improved to 30.60% in 2023, an increase of 7.75 percentage points compared to the previous year [1][3]. - The company is a leading player in the thermal transfer ribbon sector, with significant growth potential forecasted for the coming years. Projected revenues for 2024, 2025, and 2026 are 775.56 million yuan, 907.89 million yuan, and 1.05 billion yuan, respectively [3][17]. Financial Performance - In 2023, the company generated a net cash flow from operating activities of 116.18 million yuan, a year-on-year increase of 35.78% [1][17]. - The first quarter of 2024 saw a revenue of 167 million yuan, reflecting an 18.11% year-on-year growth, with a net profit of 21 million yuan, up 115.82% year-on-year [1][3]. - The company’s R&D investment reached 22.32 million yuan in 2023, marking a 20.74% increase from the previous year, emphasizing its commitment to enhancing product quality and expanding its market share [2][3]. Product and Market Strategy - The company has integrated and upgraded production lines with its subsidiaries to enhance the production capacity of mid-to-high-end products, thereby improving product quality and market share [2][3]. - The company is pursuing a global localization strategy, establishing a subsidiary in Vietnam to cater to local market demands and reduce distribution costs [2][3]. - The company plans to utilize the proceeds from convertible bonds to expand its production capacity for high-speed edge-pressed thermal transfer ribbons, further increasing its market share in high-end products [2][3].