Elegant(603221) 东吴证券·2024-04-18 04:00Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative price increase of 5% to 15% over the next 6 months [16][25]. Core Insights - The company has experienced rapid revenue growth, achieving a 47.19% year-on-year increase in revenue for 2023, amounting to 1.176 billion yuan, and a significant recovery in profitability with a net profit of 77.89 million yuan, reflecting a 318.55% increase year-on-year [25][26]. - The company is expanding its production capacity in North America, with a new facility in Mexico planned with an investment of up to 30 million USD, enhancing its overseas delivery capabilities [2][9]. - The industry is witnessing a recovery in demand, particularly in PVC flooring exports, with a notable improvement in sales performance and a positive trend in export figures since September 2023 [9][18]. Financial Summary - The company's total revenue is projected to grow from 1.609 billion yuan in 2024 to 2.486 billion yuan in 2026, with corresponding net profits expected to rise from 136.46 million yuan to 240.60 million yuan during the same period [17][26]. - The gross profit margin for 2023 was reported at 18.53%, an increase of 15.11 percentage points year-on-year, driven by lower raw material costs and improved production efficiency [18]. - The company’s earnings per share (EPS) is expected to increase from 0.56 yuan in 2024 to 0.98 yuan in 2026, indicating a strong growth trajectory [17][26].