Investment Rating - The report assigns a "Buy" rating to the company, with a target price range of 10.05 to 13.4 CNY for 2024, based on a PE ratio of 15-20 times [6][10]. Core Insights - The company achieved stable revenue growth in 2023, with a total revenue of 21.33 billion CNY, representing a year-on-year increase of 9.10%. The net profit attributable to shareholders was 2.69 billion CNY, up 18.16% year-on-year [13][21]. - The company has a strong order intake, securing new orders worth 2.916 billion CNY in 2023, a 21% increase year-on-year. Key segments include nuclear energy, metallurgy, and energy equipment [5][15]. - The company is expanding into nuclear chemical and nuclear power applications, as well as military products and high-pressure hydrogen valves, indicating a diversified growth strategy [6][15]. Financial Performance - In 2023, the company reported a gross margin of 31.69%, an increase of 1.84 percentage points year-on-year, and a net margin of 12.60%, up 0.97 percentage points [21][30]. - The company’s revenue projections for 2024-2026 are 26.10 billion CNY, 31.62 billion CNY, and 38.00 billion CNY, respectively, with net profits expected to reach 3.39 billion CNY, 4.22 billion CNY, and 5.08 billion CNY [6][16]. Product and Segment Analysis - Revenue from key products such as flanges and forgings, butterfly valves, and ball valves has shown consistent growth, contributing significantly to overall revenue [4][14]. - The nuclear power segment is highlighted as a growth driver, with the company being a leading supplier in the domestic market, maintaining a high bid win rate of over 90% [15][30]. Cost and Efficiency Metrics - The company’s expense ratio increased slightly to 16.47% in 2023, compared to 15.64% in the previous year, with sales, management, and R&D expenses showing varied trends [21][30]. - Key performance indicators per employee improved, with revenue per employee at 1.3578 million CNY and profit per employee at 171,100 CNY, reflecting operational efficiency [21].