Sun-Novo(SH:688621) Changjiang Securities·2024-05-14 03:02Investment Rating - The report assigns a "Buy" rating for the company, with expected net profits of 268 million, 356 million, and 455 million for 2024, 2025, and 2026 respectively, corresponding to current market valuations of 24, 18, and 14 times [4][38]. Core Insights - The company reported a revenue of 932 million yuan for 2023, representing a year-on-year growth of 37.76%. The net profit attributable to the parent company was 185 million yuan, up 18.08%, while the net profit excluding non-recurring items was 180 million yuan, reflecting a growth of 26.67%. In Q1 2024, revenue reached 252 million yuan, a growth of 8.53%, with a net profit of 72.75 million yuan, up 51.77% [34][38]. - The company has maintained a high growth rate in new orders, with a total of 1.504 billion yuan in new contracts signed in 2023, a growth rate of 36.50%, and a cumulative order backlog of 2.566 billion yuan, up 28.69% [20][37]. - The company has a robust R&D investment strategy, with R&D expenses reaching 124 million yuan in 2023, a year-on-year increase of 37.91%, accounting for 13.27% of total revenue. The company has initiated over 100 new R&D projects in 2023, totaling more than 350 projects [27][37]. Financial Summary - For 2023, the company achieved total revenue of 932 million yuan, with a gross profit of 528 million yuan, resulting in a gross margin of 57%. The operating profit was 194 million yuan, with a net profit of 185 million yuan [9][34]. - The company expects to continue its growth trajectory, projecting revenues of 1.249 billion, 1.583 billion, and 1.979 billion yuan for 2024, 2025, and 2026 respectively [9][34]. - The company has a strong cash flow position, with net cash flow from operating activities of 93 million yuan in 2023, and projected increases in subsequent years [9][34].