HONGYUAN ELECTRONICS(SH:603267) Tianfeng Securities·2024-05-31 03:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [2][14]. Core Views - The company is experiencing short-term pressure on its core business due to weak downstream market demand, but there is potential for recovery in demand [2][10]. - The introduction of new products, particularly in the filter and microcontroller segments, is expected to create a new growth curve for the company [2][10]. - The company's net profit forecasts for 2024 and 2025 have been adjusted downwards to 360 million and 509 million CNY respectively, with a projected net profit of 663 million CNY for 2026 [2][13]. Financial Performance Summary - In 2023, the company reported revenue of 1.68 billion CNY, a decrease of 33.02% year-on-year, primarily due to a decline in sales of high-reliability ceramic capacitors [10][12]. - The net profit for 2023 was 272 million CNY, down 66.15% from the previous year, attributed to increased R&D expenditures and a stable workforce [10][11]. - The gross margin for 2023 was 40.52%, down 9.63 percentage points year-on-year, with the gross margin for self-produced electronic components at 63.71%, down 17.20 percentage points [11][12]. - The company’s operating cash flow for 2023 was 463.21 million CNY, with a projected increase in cash flow in subsequent years [6][13]. Revenue and Profit Forecasts - Revenue is expected to recover to 2.09 billion CNY in 2024, with a growth rate of 24.66%, and further increase to 2.63 billion CNY in 2025 [13][16]. - The projected net profit for 2024 is 360 million CNY, with an increase to 509 million CNY in 2025 and 663 million CNY in 2026 [2][13]. Key Financial Ratios - The company’s P/E ratio is projected to be 22.40 in 2024, decreasing to 12.17 by 2026 [6][13]. - The return on equity (ROE) is expected to decline from 20.09% in 2022 to 6.52% in 2023, with a gradual recovery anticipated in the following years [5][17].