HUATIE(SH:603300) CAITONG SECURITIES·2024-05-13 08:08Investment Rating - The report maintains an "Accumulate" rating for the company [23][25]. Core Insights - The company has successfully expanded its overseas business and joint ventures, adding 82 new outlets in 2023, bringing the total to 274 [2][3]. - The company is entering the Korean market, expecting to generate benefits starting in 2024 [3]. - The joint ventures with Zhejiang Dongyang City Investment and Jiangxi Guixi State Control have a strategic cooperation amount of 1.5 billion yuan, with 14 outlets already operational [3]. - The company has seen a significant increase in equipment leasing, with 16,000 units leased, a year-on-year increase of 51.22%, and total assets exceeding 2.3 billion yuan [3]. Financial Performance - In 2023, the company achieved a revenue of 4.444 billion yuan, a year-on-year increase of 35.55%, and a net profit of 801 million yuan, up 25.19% [9][19]. - The quarterly revenue for 2023 was 843 million yuan in Q1, 1.096 billion yuan in Q2, 1.276 billion yuan in Q3, and 1.229 billion yuan in Q4, with respective year-on-year growth rates of 31.2%, 37.1%, 44.7%, and 28.7% [15][21]. - The average rental rate for high-altitude work platforms was 85.3%, an increase of 4.17% year-on-year [21]. Future Projections - The company is projected to achieve net profits of 985 million yuan, 1.226 billion yuan, and 1.511 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 22.94%, 24.51%, and 23.28% [22][25]. - Earnings per share (EPS) are expected to be 0.50 yuan, 0.62 yuan, and 0.77 yuan for the same years [22][25]. Operational Efficiency - The company reported a gross margin of 46.50% in 2023, a decrease of 3.76 percentage points, while the expense ratio was effectively controlled at 25.82% [31]. - The operating cash flow for 2023 was 1.945 billion yuan, an increase of 540 million yuan from the previous year [31].