SNS(SZ:300470) Guoxin Securities·2024-05-15 03:00Investment Rating - The report maintains a "Buy" rating for the company [16][34]. Core Views - The company achieved a revenue of 1.369 billion yuan in 2023, representing a year-on-year growth of 12.73%, and a net profit attributable to the parent company of 347 million yuan, up 12.09% year-on-year, indicating stable overall performance [1][22]. - The gross margin and net margin for 2023 were 49.65% and 25.34%, respectively, showing a decline of 1.69 and 0.14 percentage points year-on-year, primarily due to reduced new refining projects and intense competition in the domestic mechanical seal market [1][22]. - The company has strengthened cash collection management, achieving a net operating cash flow of 313 million yuan, a year-on-year increase of 17.01% [1]. - In Q1 2024, the company reported a revenue of 336 million yuan, a 17.10% increase year-on-year, and a net profit of 83 million yuan, up 2.88% year-on-year, with gross and net margins of 47.98% and 24.67%, respectively [1][22]. Summary by Sections Financial Performance - In 2023, the mechanical seal segment generated revenues of 430 million yuan, growing by 6.05%, while the dry gas seal segment saw revenues of 377 million yuan, up 24.63% [1]. - The mechanical seal segment's growth is attributed to rapid international business development, with international revenue exceeding 130 million yuan, a year-on-year increase of approximately 86% [1]. - The rubber and plastic seal segment achieved revenues of 141 million yuan, a growth of 23.61%, driven by demand recovery in industries such as mining and shield tunneling [1]. Incentives and Future Outlook - The company announced an equity incentive plan, granting up to 4.798 million restricted shares to 234 middle and senior management personnel, accounting for approximately 2.30% of the current total share capital, with a grant price of 16.65 yuan per share [1]. - The profit targets for the non-recurring net profit are set to grow at rates of no less than 25%, 35%, and 45% for the years 2024, 2025, and 2026, respectively [1]. - The report projects net profits for 2024, 2025, and 2026 to be 390 million, 454 million, and 545 million yuan, respectively, with corresponding P/E ratios of 20, 17, and 14 [1][38].