Neway CNC(688697) 东吴证券·2024-03-25 16:00Investment Rating - Maintains an "Overweight" rating [1] Core Views - Rapid performance growth with significant achievements in overseas market expansion [2][3] - 2023 revenue reached 2,321 million yuan, up 25.8% YoY - Net profit attributable to parent company was 318 million yuan, up 21.1% YoY - Overseas revenue surged 113% YoY to 484 million yuan, accounting for 30.4% of total revenue - Horizontal machine tools showed the largest growth, driven by overseas sales [3] - Slight decline in gross margin but improved expense control [4] - 2023 gross margin was 26.5%, down 1.0 percentage point YoY - Net profit margin was 13.7%, down 0.5 percentage point YoY - Expense ratio decreased to 13.1%, down 0.2 percentage point YoY - Continuous R&D investment enhances product competitiveness [21] - 2023 R&D expenditure was 102 million yuan, up 24.22% YoY, accounting for 4.39% of revenue - Accumulated 19 invention patents, 172 utility model patents, 21 design patents, and 39 software copyrights - Focused on six core technology areas: precision control, high-speed motion, fault analysis, ease of operation, adaptive processing, and intelligent collision protection - Capacity expansion through fundraising projects [21] - Phase III high-end CNC machine tool industrialization project started production in July 2022 - Expected to reach full capacity in 2024, adding 2,000 CNC machine tools - Estimated to generate nearly 1.2 billion yuan in additional output based on 2023 average selling price of 590,000 yuan per unit Financial Forecasts - Revenue and profit growth projections [1][10] - 2024E revenue: 2,667 million yuan, up 14.9% YoY - 2025E revenue: 3,059 million yuan, up 14.7% YoY - 2026E revenue: 3,560 million yuan, up 16.4% YoY - 2024E net profit: 373 million yuan, up 17.3% YoY - 2025E net profit: 445 million yuan, up 19.5% YoY - 2026E net profit: 526 million yuan, up 18.1% YoY - Valuation metrics [1][10] - 2024E P/E: 17.57x - 2025E P/E: 14.69x - 2026E P/E: 12.44x - 2024E P/B: 3.30x - 2025E P/B: 2.70x - 2026E P/B: 2.22x Market Performance - Stock price and valuation [7][24] - Current price: 19.59 yuan - 52-week range: 11.81-29.97 yuan - Market cap: 6,399.40 million yuan - P/B ratio: 3.98x - ROE: 19.76% (2023A)