longda(SH:688231)2024-05-27 11:01Investment Rating - The report maintains an "Outperform" rating for the company [6][19]. Core Insights - The company reported a revenue of 1.208 billion in 2023, a year-on-year increase of 26.91%, but the net profit attributable to shareholders decreased by 41.36% to 55 million [6]. - In Q1 2024, the company achieved a revenue of 317 million, up 30.54% year-on-year, with a net profit of 28 million, reflecting a 7.15% increase [6]. - The report highlights that the company benefits from increased demand in both military and civilian sectors, alongside expansion into overseas markets, which is expected to accelerate revenue growth in 2024 [6]. Financial Summary - The total revenue for 2023 was 1,208 million, with a gross profit margin of 15.4% [8]. - The net profit for 2024E is projected to be 81 million, with a year-on-year growth rate of 47% [6][8]. - The report indicates a decrease in gross margin due to raw material price fluctuations and increased fixed costs from capacity expansion [6]. Product and Market Analysis - The company reported significant growth in high-temperature alloy revenue, which reached 724 million in 2023, a year-on-year increase of 52.64% [6]. - The overseas revenue for 2023 was 98 million, showing a remarkable growth of 93.06% [6]. - The company is positioned as a key supplier of high-temperature alloys, benefiting from industry demand driven by the aerospace sector and government policies [6]. Profitability and Cost Structure - The report notes a decline in net profit margin to 4.58% in 2023, down 5.34 percentage points from the previous year [6]. - Management expenses increased, with a management expense ratio of 4.63% in 2023, indicating potential for optimization [6]. - The company recorded an asset impairment loss of 30 million in 2023, primarily due to inventory write-downs [6]. Future Earnings Forecast - The report revises the 2024-2025 net profit forecast to 81 million and 104 million, respectively, down from previous estimates of 182 million and 236 million [6]. - The projected earnings per share for 2024E is 0.33, with a PE ratio of 50, which is below the industry average [6][8]. - The company is expected to stabilize its performance in 2024, driven by improved operational efficiency and market demand [6].