OLYMPIC(603920)2024-04-25 07:00Investment Rating - The report maintains a "Buy" rating for the company, expecting its stock price to outperform the benchmark index by 10%-20% over the next 6-12 months [30][33]. Core Views - The company reported a revenue of 4.519 billion RMB in 2023, a year-on-year increase of 1.96%, and a net profit attributable to shareholders of 496 million RMB, up 14.17% year-on-year [3][4]. - The first quarter of 2024 showed a revenue of 1.093 billion RMB, representing a year-on-year increase of 7.71%, and a net profit of 109 million RMB, up 44.73% year-on-year [3]. - The company is focusing on optimizing its product structure, improving production efficiency, and reducing customer acquisition costs, which contributed to the profit margin improvements [3][4]. Financial Summary - The company achieved a gross margin of 21.32% in 2023, an increase of 2.49 percentage points year-on-year, and a net profit margin of 10.97%, up 1.17 percentage points year-on-year [3][4]. - For 2024, the company is projected to generate revenues of 5.423 billion RMB, with a net profit of 605 million RMB, reflecting a growth rate of 20.0% and 22.1% respectively [4][29]. - The earnings per share (EPS) for 2024 is estimated at 0.92 RMB, with a price-to-earnings (P/E) ratio of 18.6 [4][29]. Market and Growth Drivers - The company is leveraging both domestic and international markets for growth, with successful collaborations in the automotive electronics and AI sectors [3][31]. - The company has established partnerships with major brands like Tesla and Samsung, enhancing its position in the supply chain for new energy vehicles and AI products [3][31]. - The ongoing expansion of production capacity, particularly through a new project aimed at producing 3 million square meters of circuit boards, is expected to support long-term growth [3][31].