Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 14.70 CNY, which represents a potential upside from the current price of 12.75 CNY [7]. Core Insights - The company, Guangri Co., Ltd., is one of the oldest elevator manufacturers in China, focusing on elevator business while extending into upstream and downstream industries. In 2023, the company achieved a revenue of 7.384 billion CNY, a year-on-year increase of 5%, and a net profit attributable to shareholders of 761.7 million CNY, up 49% year-on-year [1][66]. - The company benefits from its deep partnership with Hitachi Elevator, which enhances its operational capabilities and market positioning. The elevator market is expected to grow significantly, driven by the demand for installation, upgrades, and maintenance services [2][3][73]. - The company has a comprehensive elevator industry chain, providing integrated services from design to maintenance, and is expanding into smart equipment and logistics services [51][52]. Financial Performance and Projections - The company’s revenue and net profit are projected to grow in the coming years, with net profits expected to reach 845 million CNY in 2024, 958 million CNY in 2025, and 1.04 billion CNY in 2026, reflecting year-on-year growth rates of 11%, 13%, and 8% respectively [5][6]. - The company’s EBITDA for 2023 is estimated at 1.259 billion CNY, with a projected EBITDA of 1.057 billion CNY in 2024 [6]. Market Opportunities - The elevator market is anticipated to see substantial growth, with the old community elevator installation market expected to generate approximately 4.5 to 5 billion CNY annually. The elevator replacement market is projected to reach 28.33 billion CNY in 2024 and 40.75 billion CNY in 2026, with a compound annual growth rate of 20% from 2024 to 2026 [2][4]. - The after-market for elevators, including maintenance and repairs, is expected to grow significantly, with estimates of 111.54 billion CNY in 2024, 119.28 billion CNY in 2025, and 135.21 billion CNY in 2026 [2]. Strategic Initiatives - The company has implemented a stock incentive plan to align management interests with shareholder value, indicating confidence in future growth. The company also maintains a commitment to increasing dividend payouts to shareholders [5][66]. - Guangri Co., Ltd. has been actively expanding its market share through acquisitions and enhancing its supply chain capabilities, which positions it well for future growth in a competitive market [5][66].
广日股份:受益日立优质资产,股权激励+高分红潜力尽显