Neway CNC(688697) 国泰君安·2024-03-26 16:00Investment Rating - The report assigns a rating of "Buy" to the company, with a target price of 26.68 CNY, up from the previous target of 25.20 CNY [3][13]. Core Views - The company's performance meets expectations, with notable growth in overseas markets and an increase in sales of horizontal machine tools [13]. - The company reported a revenue of 2.321 billion CNY for 2023, representing a year-on-year increase of 25.76%, and a net profit of 318 million CNY, up 21.13% year-on-year [13]. - The report highlights the company's ongoing expansion into high-end markets and overseas, with a significant increase in revenue from horizontal CNC machine tools, which grew by 41.83% year-on-year [13]. Financial Summary - Revenue Forecast (in million CNY): - 2022A: 1,846 - 2023A: 2,321 (+26%) - 2024E: 2,760 (+19%) - 2025E: 3,311 (+20%) [3][13]. - Net Profit Forecast (in million CNY): - 2022A: 262 - 2023A: 318 (+21%) - 2024E: 379 (+19%) - 2025E: 455 (+20%) [3][13]. - Key Financial Ratios: - Gross Margin for 2023: 26.46% - EBIT Margin for 2023: 14.1% - Net Asset Return Rate (ROE) for 2023: 19.8% [3][13]. Market Position - The company focuses on the R&D, production, and sales of mid-to-high-end CNC machine tools, with a product line that includes vertical and horizontal CNC machine tools, widely used in various industries such as automotive and aerospace [3][13]. - The company has a low market share in five-axis machine tools, prompting a cautious approach in its growth strategy [13]. Growth Drivers - The report emphasizes the company's strategy to enhance its product offerings in high-growth sectors such as new energy vehicles and aerospace, which are expected to contribute significantly to revenue growth [13]. - The company is benefiting from the release of production capacity and an increase in order intake across its three major product categories [13].