HUAMING(002270) 华龙证券·2024-04-14 16:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [6] Core Views - The company achieved record high revenue of 1.96 billion and net profit of 540 million in 2023, with year-on-year growth of 14.6% and 50.9% respectively [4] - The company has set a new target to double its net profit over the next four years from the 2023 baseline [4] - The company plans to distribute a total cash dividend of 740 million in 2023, with a payout ratio of 136% [5] - The company is actively expanding into Southeast Asia, the US, and Europe, which are expected to become significant growth drivers [12] Financial Performance - Revenue and net profit for 2023 reached 1.96 billion and 540 million respectively, with significant contributions from domestic and overseas markets [4] - The company’s gross margin improved to 52.23%, up 2.93 percentage points year-on-year, driven by product mix enhancement and increased overseas revenue [21] - The company’s financial expenses decreased significantly due to higher interest income covering interest expenses [21] Earnings Forecast - The company is projected to achieve net profits of 664 million, 803 million, and 977 million for 2024, 2025, and 2026 respectively, with corresponding growth rates of 22.46%, 20.89%, and 21.68% [22] - The price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are forecasted to be 25, 20, and 17 respectively [6] Market Data - As of April 12, 2024, the company's stock price is 20.41, with a market capitalization of approximately 18.29 billion [11]