NEWLAND(000997) 兴业证券·2024-05-17 03:01Investment Rating - The report maintains an "Accumulate" rating for the company [3]. Core Insights - The company achieved total revenue of 8.25 billion yuan in 2023, representing a year-on-year growth of 11.94%. The net profit attributable to shareholders was 1.004 billion yuan, marking a turnaround from losses. The non-recurring net profit reached 1.084 billion yuan, up 136.82% year-on-year. In Q1 2024, revenue was 1.741 billion yuan, down 8.34% year-on-year, while non-recurring net profit grew by 12.53% to 280 million yuan [3][4]. - The company's performance turnaround was driven by dual engines: payment services and overseas equipment sales. In 2023, the payment subsidiary, Guotong Xingyi, generated revenue of 3.281 billion yuan, a 47.06% increase, and turned profitable with a net profit of 613 million yuan. Overseas sales in the equipment segment reached 2.253 billion yuan, up 8.69%, with over 70% of equipment revenue coming from international markets [3][4]. - The company has focused on a "digital commerce" strategy since 2023, providing services to over 370,000 active merchants, generating 1.095 billion yuan in revenue, with an average revenue per user (ARPU) of 295 yuan per year. In Q1 2024, value-added services revenue reached 150 million yuan, indicating potential new growth drivers [3][4]. - The total transaction volume for payment services in 2023 was 25 trillion yuan, a year-on-year increase of 8%. The payment fee rate for 2023 was 0.13%, up from 0.09% the previous year, with a net fee rate of 0.024% compared to a loss the prior year. In Q1 2024, the payment fee rate was 0.136%, and the net fee rate was 0.032%, continuing the trend of fee rate improvement [3][4]. - The company plans to accelerate its international expansion in 2024, entering a new phase of internationalization, with a focus on the Asia-Pacific, Middle East, and European markets, while continuing to upgrade and replace smart equipment [3][4]. Financial Summary - For 2023, the company reported operating revenue of 8.25 billion yuan, with a projected growth of 11.5% to 9.201 billion yuan in 2024. The net profit attributable to shareholders is expected to grow by 28.2% to 1.287 billion yuan in 2024, with a gross margin of 40.3% in 2023, projected to increase to 41.4% in 2024 [4][5]. - Key financial metrics for 2023 include a return on equity (ROE) of 15.7% and earnings per share (EPS) of 0.97 yuan. The price-to-earnings (PE) ratio is 16.9, expected to decrease to 12.6 in 2024 [4][5].