QINCHUAN(000837) 国金证券·2024-03-30 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant decline in profit for 2023, with revenue of 3.761 billion RMB, down 8.29% year-on-year, and a net profit attributable to shareholders of 52 million RMB, down 81% year-on-year [3][10] - The machine tool business faced challenges due to industry conditions, with revenue of 1.781 billion RMB, down 17.83% year-on-year, and a gross margin of 16.72%, down 1.83 percentage points [10] - The components business showed slight growth, achieving revenue of 1.392 billion RMB, up 7.28% year-on-year, with a gross margin of 13.06%, down 0.24 percentage points [10] - The company is expected to benefit from a recovery in the machine tool industry, with projected net profits of 151 million RMB, 279 million RMB, and 432 million RMB for 2024 to 2026, respectively [10] Summary by Sections Financial Performance - In 2023, the company achieved revenue of 3.761 billion RMB, a decrease of 8.29% from 2022, and a net profit of 52 million RMB, a decrease of 81% [10][12] - The gross margin for 2023 was 17.77%, down 1.12 percentage points year-on-year, with a net profit margin of 1.78%, down 6.17 percentage points [10] Business Segments - Machine Tool Business: Revenue of 1.781 billion RMB, down 17.83% year-on-year, with a gross margin of 16.72% [10] - Components Business: Revenue of 1.392 billion RMB, up 7.28% year-on-year, with a gross margin of 13.06% [10] Future Outlook - The company is projected to achieve net profits of 151 million RMB in 2024, 279 million RMB in 2025, and 432 million RMB in 2026, with corresponding P/E ratios of 64X, 34X, and 22X [10][12]