Neway CNC(688697) 长城证券·2024-05-09 00:02Investment Rating - The report assigns an "Overweight" rating to Neway CNC (688697 SH) for the first time [1][4] Core Views - Neway CNC's operating performance continues to grow, with active expansion in overseas markets [1] - The company's revenue in 2023 maintained a good growth rate, with overseas sales revenue doubling year-on-year [1] - The company is strengthening its R&D and technological innovation, with R&D investment accounting for 4 39% of total revenue in 2023 [32] - The company's fourth-phase high-end intelligent CNC equipment and core functional components project is nearing completion and is expected to be operational by 2025 [2] Financial Performance - Revenue in 2023 was RMB 2 321 billion, a year-on-year increase of 25 76% [31] - Net profit attributable to the parent company in 2023 was RMB 318 million, a year-on-year increase of 21 13% [31] - Revenue from large machining centers in 2023 was RMB 959 million, a year-on-year increase of 14 98%, with a gross margin of 24 47% [1] - Revenue from vertical CNC machine tools in 2023 was RMB 646 million, a year-on-year increase of 29 72%, with a gross margin of 25 28% [1] - Revenue from horizontal CNC machine tools in 2023 was RMB 692 million, a year-on-year increase of 41 83%, with a gross margin of 30 20% [1] - Domestic sales revenue in 2023 was RMB 1 604 billion, a year-on-year increase of 6 66% [1] - Overseas sales revenue in 2023 was RMB 705 million, a year-on-year increase of 112 99% [1] Future Projections - Revenue is expected to grow to RMB 2 747 billion in 2024, RMB 3 222 billion in 2025, and RMB 3 737 billion in 2026 [1] - Net profit attributable to the parent company is expected to be RMB 370 million in 2024, RMB 447 million in 2025, and RMB 533 million in 2026 [4] - EPS is expected to be RMB 1 13 in 2024, RMB 1 37 in 2025, and RMB 1 63 in 2026 [4] - P/E ratio is expected to be 17 3x in 2024, 14 3x in 2025, and 12 0x in 2026 [4] Industry and Market Position - Neway CNC operates in the machinery industry, specializing in the R&D, production, and sales of medium and high-end CNC machine tools [1][32] - The company has undertaken 9 national major scientific and technological projects, improving the overall performance of CNC machine tools and narrowing the technological gap with international leading levels [32] Capital and Investment Projects - The company raised RMB 572 million in net proceeds from its IPO in September 2021, with RMB 490 million invested by the end of 2023, achieving an investment progress of 85 57% [2] - The third-phase mid-to-high-end CNC machine tool industrialization project is expected to add 2,000 CNC machine tools annually upon completion [2] - The fourth-phase high-end intelligent CNC equipment and core functional components project is expected to provide 60,000 square meters of intelligent production workshops and supporting facilities [2]