SACO(002025) 申万宏源·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company's 2023 performance met market expectations, with revenue of 6.21 billion yuan, a year-on-year increase of 3.16%, and a net profit attributable to shareholders of 750 million yuan, up 35.11% year-on-year [5]. - The connector segment showed strong growth, with revenue reaching 4.43 billion yuan, a year-on-year increase of 14.28%, while other segments like motors and relays experienced declines [5]. - The company's gross margin improved to 37.99%, an increase of 4.99 percentage points from 2022, driven by higher sales of high-end connectors [5]. - The company is positioned as a core supplier in the aerospace connector market, benefiting from increased demand in both military and civilian sectors, particularly with the growth of 5G infrastructure [5]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 6.21 billion yuan, with a year-on-year growth rate of 3.16% [6]. - The net profit attributable to shareholders was 750 million yuan, reflecting a year-on-year increase of 35.11% [6]. - The company's gross margin for 2023 was 37.99%, up from 33.0% in 2022 [6][7]. Revenue Breakdown - Connector revenue was 4.43 billion yuan, up 14.28% year-on-year [5]. - Motor revenue decreased by 16.21% to 1.26 billion yuan, while relay revenue fell by 9.21% to 326 million yuan [5]. - The company is expanding its product lines, including aerospace, high-speed, deep-water sealing, and liquid cooling connectors [5]. Future Projections - The report projects a decrease in net profit estimates for 2024 and 2025 to 900 million yuan and 1.17 billion yuan, respectively, due to increased costs from stock incentive plans [5]. - The company is expected to continue benefiting from high demand in the aerospace sector and the expansion of its production capacity [5].