SANHUA(SZ:002050) Changjiang Securities·2024-05-16 06:32Investment Rating - The investment rating for the company is "Buy" and it is maintained [5][7]. Core Views - The company achieved a revenue of 24.6 billion yuan in 2023, representing a year-on-year growth of 15%. The net profit attributable to shareholders was 2.9 billion yuan, up 14% year-on-year. The net profit after deducting non-recurring items was 2.92 billion yuan, showing a growth of 27% [5][6]. - In Q1 2024, the company reported a revenue of 6.4 billion yuan, a year-on-year increase of 13%. The net profit attributable to shareholders was 650 million yuan, an 8% increase year-on-year, while the net profit after deducting non-recurring items was 670 million yuan, up 21% year-on-year [5][6]. Summary by Sections Annual Performance - The company's automotive parts and traditional refrigeration businesses both experienced revenue growth and improved gross margins in 2023. The automotive parts business generated 9.9 billion yuan in revenue, a 32% increase, with electric vehicle revenue reaching 8.9 billion yuan, growing approximately 34%, surpassing the global electric vehicle production and sales growth rate of 25%-30% for 2023. The gross margin for the automotive parts segment was 27.4%, up 1.5 percentage points year-on-year, primarily benefiting from scale effects, reduced shipping costs, and improved product mix. The net profit for the automotive parts segment was 1.5 billion yuan, growing over 50% year-on-year [6][7]. - The traditional refrigeration business achieved a revenue of 14.6 billion yuan in 2023, a 6% increase, with a gross margin of 28.2%, up 2.0 percentage points year-on-year. This growth was also attributed to scale effects, reduced shipping costs, and improved product mix. The net profit for the traditional refrigeration segment was 1.4 billion yuan, showing significant growth [6][7]. Quarterly Performance - In Q1 2024, the company expects to maintain steady growth in traditional refrigeration, with domestic demand anticipated to be relatively strong. The gross margin for Q1 2024 is projected to be 27%, an increase of 1.5 percentage points year-on-year, benefiting from scale effects. The expense ratio is expected to remain stable [6][7]. Financial Indicators - The company reported a net operating cash flow of 3.72 billion yuan in 2023 and 110 million yuan in Q1 2024. Capital expenditures were 2.7 billion yuan in 2023 and 900 million yuan in Q1 2024, reflecting active capacity expansion. The inventory balance at the end of Q1 2024 was 5 billion yuan, indicating a further increase and laying a foundation for future delivery demand [7][8]. - The company is focusing on the bionic robot sector, particularly in electromechanical actuators, and is collaborating with clients on product development, which is expected to contribute significant potential growth in the future [7][8]. - The projected net profit attributable to shareholders for 2024 is 3.5 billion yuan, corresponding to a PE ratio of approximately 23 times [7].