Investment Rating - The investment rating for the company is "Buy-A" with a target price of 48.64 CNY for the next six months [21][29]. Core Views - The company has shown a recovery in revenue growth, with a year-on-year increase of 20.8% in Q4 2023 and 17.3% in Q1 2024, attributed to improved domestic demand for scroll compressors [2][28]. - The company is expected to benefit from the domestic substitution opportunities in the scroll compressor market, with projected EPS of 1.95, 2.41, and 3.01 for 2024 to 2026 [29]. Financial Performance Summary - The company's main revenue for 2023 was 5.5 billion CNY, a year-on-year increase of 23.9%, with a net profit of 0.9 billion CNY, up 24.2% [28]. - The forecasted main revenue for the upcoming years is as follows: 6.8 billion CNY in 2024, 8.5 billion CNY in 2025, and 10.5 billion CNY in 2026 [3][16]. - The net profit is expected to grow to 1.1 billion CNY in 2024, 1.4 billion CNY in 2025, and 1.8 billion CNY in 2026 [3][16]. Profitability and Efficiency Metrics - The company's gross profit margin has shown fluctuations, with a decrease in Q4 2023 and Q1 2024 due to a decline in the proportion of high-margin export business [20]. - The operating cash flow for Q1 2024 was a net outflow of 5.34 million CNY, an improvement from the previous year's outflow of 16.96 million CNY, indicating better cash generation from sales [12][20]. Market Position and Outlook - The company is well-positioned in the heat pump and cold chain application markets, with a solid foothold in commercial air conditioning applications [2]. - The domestic sales of scroll compressors are expected to continue growing, with a year-on-year increase of 14.0% in Q4 2023 and 8.6% in January-February 2024 [2].
内销需求改善，近两季收入快速提升