Tiantai Xianghe(603500) 长城证券·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [34]. Core Insights - The company achieved revenue of 641 million yuan and a net profit of 67 million yuan in 2023, representing year-on-year growth of 5.6% and 0.8% respectively, driven by sufficient orders across various business segments, particularly in high-speed rail fasteners [8][22]. - The company is accelerating new product development, with significant breakthroughs in capacitor applications and the rail fastening sector, including the successful development and industrialization of 63 new products [6]. - The company is expected to achieve revenues of 721 million yuan, 841 million yuan, and 1,002 million yuan from 2024 to 2026, with corresponding net profits of 85 million yuan, 95 million yuan, and 107 million yuan, reflecting growth rates of 26.1%, 12.0%, and 13.1% respectively [9]. Financial Summary - Revenue and net profit for 2023 were 641 million yuan and 67 million yuan, with a gross margin of 28.39%, an increase of 2.70 percentage points year-on-year [8]. - The company's return on equity (ROE) is projected to increase from 7.7% in 2023 to 10.2% in 2026 [5][29]. - The earnings per share (EPS) are expected to rise from 0.27 yuan in 2023 to 0.44 yuan in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 38.2 to 23.9 over the same period [5][29].