Warom Incorporated(603855) 光大证券·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a favorable outlook for investment over the next 6-12 months with expected returns exceeding 15% compared to market benchmarks [12][7]. Core Insights - The company reported a revenue of 3.197 billion yuan in 2023, a year-on-year increase of 5.06%, and a net profit of 461 million yuan, up 28.73% year-on-year, indicating strong financial performance [1][10]. - The company continues to experience robust cash flow, with net cash inflow from operating activities reaching 627 million yuan, a significant increase of 245.7% year-on-year [1]. - The company has a high dividend payout ratio of 73.21%, proposing a cash dividend of 10 yuan for every 10 shares [1]. Revenue Performance - The revenue breakdown for 2023 includes 2.602 billion yuan from explosion-proof products, 321 million yuan from professional lighting, and 274 million yuan from engineering services [1]. - Domestic sales accounted for 2.5 billion yuan, while foreign trade revenue reached 700 million yuan, reflecting a growth of 11% year-on-year [1]. Profitability Metrics - The company's gross margin and net margin improved to 54.19% and 14.63%, respectively, with increases of 3.82 percentage points and 2.82 percentage points year-on-year [1]. - Earnings per share (EPS) for 2023 was reported at 1.37 yuan, with projections of 1.60 yuan, 2.08 yuan, and 2.32 yuan for 2024, 2025, and 2026, respectively [2][10]. Market Expansion - The company is expanding its international presence, establishing overseas operational centers in Europe, Central Asia, and Southeast Asia, with plans for further expansion into regions like the Far East and Africa [1]. - The report highlights a growing market demand in the safety intelligence sector, particularly in chemical parks, with the company benefiting from this trend [1]. Future Projections - The company is projected to achieve net profits of 540 million yuan in 2024, 703 million yuan in 2025, and 783 million yuan in 2026, indicating a positive growth trajectory [2][10]. - The report emphasizes the company's strong position as a leading manufacturer in the explosion-proof electrical equipment sector, with significant growth potential in emerging markets and overseas operations [1][10].