Great Power(SZ:300438) Changjiang Securities·2024-05-16 06:32Investment Rating - The investment rating for the company is "Buy" and is maintained [11]. Core Views - The company reported a revenue of 6.932 billion yuan in 2023, a year-on-year decrease of 23.54%, and a net profit attributable to shareholders of 43 million yuan, down 93.14% year-on-year [2][9]. - In Q4 2023, the company achieved a revenue of 1.193 billion yuan, a year-on-year decline of 53.49%, with a net profit of -232 million yuan, a decrease of 224.99% year-on-year [2][9]. - For Q1 2024, the company reported a revenue of 1.597 billion yuan, down 36.00% year-on-year, with a net profit of 16 million yuan, a decrease of 91.04% year-on-year [2][9]. Financial Performance Summary - The company's gross margin in Q4 2023 was 6.58%, down 11.15 percentage points, primarily due to inventory destocking overseas and a significant drop in domestic raw material prices [2][3]. - The company is expected to see a recovery in gross margin as raw material prices stabilize and sales volume gradually improves [3]. - The forecast for 2024 indicates a net profit of 420 million yuan, corresponding to a PE ratio of 29 times [3]. Business Outlook - The company anticipates a recovery in consumer electronics demand, with a stable growth rate of 10-15% in the battery sector [3]. - The company is expanding its overseas business, including the establishment of a factory in Vietnam and partnerships in North America, Europe, Japan, and Indonesia [3].