广日股份交流纪要

Summary of Guangri Co., Ltd. Conference Call Industry and Company Overview - The conference call pertains to Guangri Co., Ltd., which operates in the elevator industry and is involved in capital operations and financial management [1][2]. Key Points and Arguments 1. Equity Incentive Plan and Financial Impact - The company has increased its dividend payout ratio in the annual report, indicating potential in capital operations [1] - The equity incentive plan was registered on July 5, with a grant date of June 14, affecting the tax situation of the incentive recipients [1] - The company anticipates a nearly 30% growth in interest rates for 2023, with a 20% growth in Q1 2024, alongside improvements in gross margin and profitability [1] - Despite a floating loss of approximately 62 million from Xinzhu Co. in the first half, the company expects positive growth in net profit for the same period [1] - Plans to reduce assets and improve asset return levels through cash dividends, debt repayment, and better management of inventory and receivables [1] 2. Market Performance and Sales Trends - From January to May, the elevator industry saw a year-on-year order decline of 11%, while Guangri's orders decreased from an 8% growth in Q1 to about 1% [2] - Guangri and Hitachi's sales performance is better than the industry average, with overall improvement from Q1 to Q2 [2] - Optimistic order trends are expected for Q3, with improved sales confirmation and reduced order-to-delivery cycles due to market caution [2] - The company's gross margin continued to improve in the first half of the year, with Hitachi also experiencing margin growth [2] 3. Future Incentive Plans and Dividend Policies - A second equity incentive plan is being launched based on the experiences from the first plan, focusing on net profit growth, R&D investment intensity, and sales growth [3] - The target for 2024's non-GAAP net profit is set at 665 million, with R&D investment at 3.5% and a sales target of over 28,000 units [3] - The company plans to distribute no less than 60% of profits as base dividends annually from 2023 to 2026, with potential for special dividends [4] 4. Industry Competition and Pricing Strategy - The gap between decision-making and results in the industry has shortened, allowing the company to adapt to market conditions and reduce production cycles [4] - Price competition is present, with stable pricing from Guangri, Yida, and Hitachi, although some companies are lowering prices to gain orders [4][8] - A decline in building floors has impacted the sales of elevator-related products [4][8] 5. Product Sales and Structural Changes - A decrease in building volume and floor count has led to reduced demand for elevator components such as rails, buttons, cables, and ropes [5] - Despite stable pricing, changes in downstream product structure may affect revenue, not due to price changes [5] 6. Q&A Insights - Q3 is expected to show optimistic order trends, with a potential shortening of order-to-delivery cycles influenced by the macroeconomic environment [6] - The equity incentive plan is expected to positively impact profitability and operational efficiency, especially with improvements in the home decoration sector due to economic recovery [7] - The company is considering a second equity incentive plan and has already implemented measures for dividends, anticipating the achievement of incentive targets [7] - Price competition remains a concern, with adjustments expected based on market conditions [8] - The company acknowledges that changes in product structure and building floor counts may impact revenue, despite stable pricing [9] - Future considerations for semi-annual dividends and special dividends are noted as a trend [9]