Hangcha (SH:603298) Guolian Securities·2024-04-18 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 33.85 CNY for 2024 [6][9]. Core Insights - The company achieved significant growth in 2023, with revenue reaching 16.272 billion CNY, a year-on-year increase of 12.90%, and a net profit of 1.720 billion CNY, up 74.23% year-on-year [2][3]. - The domestic market has shown robust development, with domestic revenue of 9.492 billion CNY, reflecting a 10.07% increase year-on-year, driven by a focus on large markets and key clients [3]. - The company has established a global operational management system, with overseas revenue of 6.535 billion CNY, marking a 29.72% increase year-on-year, supported by new operations in Mexico, Brazil, and the USA [4]. - Profitability metrics improved, with a gross margin of 20.78%, up 3.0 percentage points year-on-year, and a net margin of 11.27%, the highest since the company went public [5]. Financial Performance and Forecast - The company forecasts revenue growth for 2024-2026, estimating revenues of 18.725 billion CNY, 20.981 billion CNY, and 23.508 billion CNY, with corresponding growth rates of 15.08%, 12.05%, and 12.05% [6][7]. - Projected net profits for the same period are 1.941 billion CNY, 2.466 billion CNY, and 2.926 billion CNY, with growth rates of 12.84%, 27.05%, and 18.66% respectively [6][7]. - The report highlights an expected EPS of 2.07 CNY, 2.64 CNY, and 3.13 CNY for 2024, 2025, and 2026, indicating a 3-year CAGR of 19.37% [6][7].