JIANGXI GUOKE DEFENCE GROUP CO.(SH:688543) Minsheng Securities·2024-03-27 16:00Investment Rating - The report maintains a "Recommended" rating for the company [7][10]. Core Views - The company achieved a revenue of 1.04 billion yuan in 2023, representing a year-on-year growth of 24.3%. The net profit attributable to shareholders was 141 million yuan, with a year-on-year increase of 27.3% [7]. - The company has shown strong growth potential with new projects and products opening up growth opportunities. The net profit for 2024 is projected to be 189 million yuan, with further increases expected in subsequent years [7]. - The company is a core supplier of ammunition and guided equipment components, benefiting from the development of ammunition intelligence and its consumable nature [7]. Financial Performance Summary - Revenue (in million yuan): 1,040 in 2023, with a growth rate of 24.3% [3]. - Net profit attributable to shareholders (in million yuan): 141 in 2023, with a growth rate of 27.3% [3]. - Earnings per share (in yuan): 0.96 in 2023, projected to increase to 1.99 by 2026 [3][11]. - The company’s gross margin for 2023 was 32.4%, a decrease of 4.8 percentage points year-on-year, while the net margin increased by 0.6 percentage points to 14.1% [7]. - The company’s total assets are projected to grow from 3,247 million yuan in 2023 to 3,966 million yuan by 2026 [9][11]. Growth and Efficiency Metrics - The company’s operating profit is expected to grow from 167 million yuan in 2023 to 346 million yuan by 2026, reflecting a compound annual growth rate [9]. - The return on equity (ROE) is projected to increase from 6.21% in 2023 to 12.21% by 2026 [9]. - The company has successfully reduced its expense ratio, with a decrease of 4.1 percentage points in 2023, indicating improved operational efficiency [7].