DAYUAN PUMP(SH:603757) Guoxin Securities·2024-05-14 13:02Investment Rating - The investment rating for the company is "Buy" [11][15][34]. Core Views - The company achieved a revenue of 1.88 billion yuan in 2023, representing a year-on-year growth of 12.0%, with a net profit attributable to shareholders of 290 million yuan, up 9.5% [11]. - The company plans to distribute a cash dividend of 10 yuan for every 10 shares, resulting in a cash dividend rate of 58%, with a total dividend rate of 72% when combined with interim dividends and share buybacks [11]. - The company is a leading player in the domestic household shielding pump market and is expected to benefit from the long-term growth potential in the heat pump sector driven by energy-saving and emission reduction factors [11]. Financial Performance Summary - The company reported a revenue of 1.88 billion yuan in 2023, with a net profit of 290 million yuan, and a net profit margin of 15.2% [11][31]. - The revenue for 2024 is projected to be 2.07 billion yuan, with a net profit of 321 million yuan, reflecting a year-on-year growth of 12.6% [31]. - The company’s gross margin improved by 2.6 percentage points to 32.0% in 2023, with an expected increase to 35.9% in Q1 2024 [11][31]. Financial Forecasts - The forecast for net profit attributable to shareholders for 2024-2026 is 320 million, 370 million, and 410 million yuan, respectively, with corresponding year-on-year growth rates of 13%, 15%, and 12% [11][31]. - The company’s price-to-earnings (P/E) ratio is projected to decrease from 12.9 in 2023 to 8.9 in 2026, indicating an attractive valuation [11][31].