DFDR(SZ:300217) Huachuang Securities·2024-06-06 07:02Investment Rating - The report adjusts the investment rating to "Recommended" with a target price of 4.8 CNY, corresponding to a PE of 17 times for 2024 [1][22]. Core Views - The company's revenue is relatively stable, with a total revenue of 4.11 billion CNY in 2023, representing a year-on-year growth of 7.5%. However, some business segments are under short-term pressure [1]. - The net profit attributable to the parent company reached 640 million CNY in 2023, a significant increase of 113.3% year-on-year, driven by strong performance in new energy-related businesses and an improved product mix [1]. - The company has established long-term stable relationships with leading clients such as Gree and Midea, which helps maintain revenue stability despite market fluctuations [1]. - The company is positioned to benefit from the growing demand in the new energy vehicle sector, with a strong order backlog in the new energy equipment segment [1]. - The report highlights the company's technological advantages in certain business areas, particularly in the pre-plated nickel battery steel belt production, which is expected to drive future growth [1]. Financial Summary - In 2023, the company achieved a gross margin of 23.6%, an increase of 3.4 percentage points year-on-year, with a net profit margin of 15.7%, up by 7.8 percentage points year-on-year [1]. - The report forecasts a decline in EPS for 2024 and 2025 to 0.29 CNY and 0.34 CNY, respectively, with a new forecast for 2026 at 0.40 CNY [1][23]. - The company’s total assets are projected to grow from 7.27 billion CNY in 2023 to 9.49 billion CNY by 2026, indicating a positive growth trajectory [27].