HGTECH(000988) 民生证券·2024-03-27 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company achieved a net profit of 1.007 billion yuan in 2023, representing a year-on-year increase of 11.14%, indicating a significant improvement in profitability despite a revenue decline [1]. - Revenue for 2023 was 10.208 billion yuan, down 15.01% year-on-year, but the gross margin improved to 23.11%, up 4.0 percentage points, and the net margin increased to 9.78%, up 2.4 percentage points [1]. - The company's sensor business showed strong performance with a revenue of 3.248 billion yuan, a year-on-year growth of 40.02%, driven by high-value products in the new energy sector [1]. - The smart manufacturing segment generated 3.19 billion yuan in revenue, a slight decline of 3% year-on-year, but with an improved gross margin of 33.93% [1]. - The report highlights challenges in the small station and laser anti-counterfeiting businesses, with a significant revenue drop in the connectivity segment due to the 5G construction cycle [1]. Financial Forecasts - The company is expected to achieve net profits of 1.313 billion yuan, 1.591 billion yuan, and 1.909 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding growth rates of 30.4%, 21.2%, and 20.0% [2][5]. - Projected revenues for 2024, 2025, and 2026 are 13.475 billion yuan, 16.574 billion yuan, and 19.889 billion yuan, with growth rates of 32.0%, 23.0%, and 20.0% respectively [2][5]. - The current market capitalization corresponds to price-to-earnings ratios of 24x, 20x, and 17x for the years 2024, 2025, and 2026 [1][2].