Huarui Precision(SH:688059)2024-03-01 08:24Group 1: Market Overview - The domestic tool market has seen significant advancements in technology, leading to improved production capabilities and performance control [1][3] - In 2022, China's tool market consumption scale was approximately 46.4 billion yuan, with imports accounting for 12.6 billion yuan, indicating a shift towards domestic production [1][2] - The proportion of imported tools in total consumption decreased from 37.17% in 2016 to 27.16% in 2022, reflecting accelerated domestic substitution [1][2] Group 2: Company Performance - In 2023, the company reported a revenue of 794.27 million yuan, a year-on-year increase of 32.02% [2] - Operating profit was 182.14 million yuan, showing a slight decline of 0.54% compared to the previous year [2] - Net profit attributable to shareholders was 157.63 million yuan, down 5.00% year-on-year [2] Group 3: R&D Investment - R&D expenses from 2020 to 2022 were 19.75 million yuan, 24.91 million yuan, and 41.56 million yuan, respectively, indicating a consistent upward trend [2] - As of September 30, 2023, R&D expenses reached 46.28 million yuan, a 64.03% increase year-on-year, accounting for 7.88% of revenue [2] Group 4: Sales Strategy - The company primarily employs a distribution model supplemented by direct sales, with increased efforts in developing direct sales teams and clients in the aerospace sector [2] - The direct sales approach requires rapid response to customer needs, enhancing the company's technical development and service capabilities [2]