Jinwu Financial News | According to Haitong International Research & Development, Morimatsu International (02155) announced that for the full year of 2023, net profit to mother was 845 million yuan, +26.2% year-on-year, in line with expectations, with a net interest rate of 11.4% (+1.1 pcts year on year). During the period, the company achieved a total revenue of 7.36 billion yuan, +13.47% over the same period. The increase mainly came from the oil and gas refining industry (the industry's revenue +502.9% yoy) achieved overall delivery and full revenue recognition during the year. The top three revenue growth industries were oil and gas refining (+502.9%), power battery raw materials (+15%), and chemicals (+8.9%). The gross margin was 27.9% (+0.3% YoY), mainly due to improvements in the Group's overall operating efficiency.
According to the bank, the company signed a new order of 7.784 billion yuan (-16.8% yoy) in 2023, mainly due to the long sales cycle for downstream high value-added orders, and the signing and confirmation of some orders was delayed until 24 years. Among the new orders, the top three industries were pharmaceuticals and biopharmaceuticals (2.605 billion, accounting for 33.5% yoy), chemicals (1,667 billion, accounting for 21%, -8% yoy), and electronic chemicals (1,164 billion, accounting for 15%, -41% yoy). There was a significant increase in “other” orders (+376% yoy), mainly in emerging sectors such as green energy. The bank believes that as the Group's share of high-quality medium- and long-term orders increases, it will help the Group's subsequent steady growth in performance and enhance profit efficiency.
The bank said that due to the increase in the company's share of medium- to long-term orders, the amount of new orders was lower than expected, and the bank lowered the company's revenue and profit forecasts. The bank expects the company's revenue for 24/25/26 to be 84.76/98.06/11.296 billion yuan (previous value: 2024/2025 was 101.92/12.31 billion yuan, respectively), with a growth rate of 15.2%/15.7%/15.2%; net profit to mother for 24/25/26 was 10.14/12.02/1,424 billion yuan, respectively (previous value: 2024/2025, respectively), with growth rates of 20.0%/18.5%/18.5%. Due to a reduction in the overall valuation center of Hong Kong stocks, the bank gave the company 11XPE 2024 according to comparable company valuations. Assuming the RMB/HKD exchange rate is 0.92, the corresponding stock price is 10.2HKD. Maintain an investment rating of “superior to the market”.