3S(SH:605305) Changjiang Securities·2024-05-13 02:32Investment Rating - The report maintains a "Buy" rating for the company [2][24]. Core Views - The company's performance exceeded expectations, driven by growth in overseas markets and emerging businesses, with 2023 revenue reaching 1.105 billion yuan, a year-on-year increase of 38.17%, and a net profit of 207 million yuan, up 33.33% [2][23]. - The company is enhancing its product and service offerings while accelerating its international expansion, including the establishment of a wholly-owned subsidiary in the U.S. to boost overseas operations [2][23]. - The company is actively expanding into non-wind power sectors, developing new products such as intelligent safety protection equipment and industrial lifting machines, which are expected to create new profit growth points [23][24]. Summary by Sections Financial Performance - In Q4 2023, the company achieved revenue of 405 million yuan, a 70.48% increase year-on-year, and a net profit of 88 million yuan, up 281.28% [2][23]. - For Q1 2024, revenue was 241 million yuan, a 37.24% increase year-on-year, with a net profit of 58 million yuan, up 285.87% [2][23]. Market Expansion - The company is focusing on enhancing its international marketing and after-sales service networks, which has improved customer coverage [2][23]. - The report highlights the potential for growth in the offshore wind market, particularly in the U.S., where construction costs are decreasing and projects are being restarted [3][23]. Future Outlook - The company is expected to benefit from ongoing domestic wind power installations and an increase in overseas revenue, which will likely enhance its profitability [24]. - Projections for net profit are 280 million yuan for 2024 and 360 million yuan for 2025, corresponding to price-to-earnings ratios of 23 and 18 times, respectively [24].