Lance Technology (300433) released its 2023 annual report on April 22nd. 2023TimewarparcadeThe company achieved a total revenue of 544Timewarparcade91 billion yuan, an increase of 16% over the same period last yearTimewarparcade.69%; net profit returned to the mother was 3.021 billion yuan, up 23.42% from the same period last year; non-net profit was 2.246 billion yuan, up 14.48% from the same period last year; net cash flow from operating activities was 9.3 billion yuan, up 1.30% from the same period last year; during the reporting period, Lance Technology's basic earnings per share was 0.61 yuan, and the weighted average return on net assets was 6.69%. The annual profit distribution plan of the company in 2023 isTimewarparcadeIt is proposed to distribute 3 yuan (including tax) to all shareholders for every 10 shares.

At its closing price on April 19, Lance is trading at a price-to-earnings ratio (TTM) of about 22.45 times, a price-to-book ratio (LF) of about 1.46 times, and a price-to-sales ratio of about 1.24 times.

The historical quantiles of the company's recent price-to-earnings ratio (TTM), price-to-book ratio (LF) and price-to-sales ratio (TTM) are as follows:

Statistics show that Lance's total revenue has grown at a compound growth rate of 13.84% in the past three years, ranking 12th among the 30 companies in the consumer electronics parts and assembly industry that have disclosed data for 2023. In the past three years, net profit grew at a compound annual growth rate of-14.86%, ranking 19prime 30.

According to the annual report, there was no significant change in the company's main business and industry status during the reporting period. The company's business involves the structural components, modules and assembly of smart terminals such as smart phones and computers, smart head display and intelligent wear, new energy vehicles and intelligent cockpits, covering new materials such as glass, metal, sapphire, ceramics, plastic, carbon fiber, as well as matching accessories, fixture moulds, production equipment, testing equipment, automation equipment, independently developed industrial Internet system.

In terms of products, in the company's main business in 2023, the revenue from smartphones and computers was 44.901 billion yuan, up 17.50% from the same period last year, accounting for 82.40% of the business income; the income from new energy vehicles and smart cockpits was 4.998 billion yuan, up 39.47% from the same period last year, accounting for 9.17% of the business income; and the revenue from smart head display and smart wear was 3.104 billion yuan, down 12.29% from the same period last year, accounting for 5.70% of the business income.

By the end of 2023, the total number of employees of the company was 133675, with per capita income of 407600 yuan, per capita profit of 22600 yuan and per capita salary of 89600 yuan, which changed by 12.56%, 19.06% and-12.30% respectively over the same period last year.

In 2023, the company's gross profit margin was 16.63%, down 2.58 percentage points from the same period last year; the net profit margin was 5.58%, up 0.18 percentage points from the same period last year. According to the single-quarter indicators, the company's gross profit margin in the fourth quarter of 2023 was 14.34%, down 10.09% from the same period last year and 6.09% from the previous quarter; the net profit rate was 6.68%, down 4.62% from the same period last year and 1.35% from the previous quarter.

In terms of products, the gross profit margins of smart phones and computers, new energy vehicles and smart cockpits, smart head displays and smart wearers in 2023 are 15.65%, 15.47% and 15.27%, respectively.

During the reporting period, the total sales amount of the company's top five customers was 45.282 billion yuan, accounting for 83.10% of the total sales amount, and the total purchase amount of the company's top five suppliers was 17.393 billion yuan, accounting for 51.86% of the total annual purchase.

According to the data, the weighted average return on equity of the company in 2023 was 6.69%, an increase of 1.03 percentage points over the same period last year, and the return on invested capital in 2023 was 5.28%, an increase of 0.58 percentage points over the same period last year.

In 2023, the net cash flow of the company's operating activities was 9.3 billion yuan, an increase of 1.30% over the same period last year; the net cash flow of fund-raising activities was-5.137 billion yuan, a decrease of 2.721 billion yuan over the same period last year; and the net cash flow of investment activities was-5.367 billion yuan, compared with-5.577 billion yuan in the same period last year.

Further statistics show that the company's free cash flow in 2023 was 3.27 billion yuan, an increase of 28.75% over the same period last year.

In 2023, the cash ratio of the company's operating income is 97.95%, and the net current ratio is 307.82%.

In terms of operating capacity, in 2023, the company's total asset turnover rate was 0.70 times, compared with 0.60 times in the same period last year (the industry average in 2022 was 0.67 times, and the company ranked in the same industry 60 times 94); the fixed assets turnover rate was 1.52 times, compared with 1.37 times in the same period last year (the industry average in 2022 was 4.28 times, and the company ranked 85Univer 94 in the same industry). The turnover rate of accounts receivable and inventory is 5.95 times and 6.80 times respectively.

In 2023, the company's period expenses were 5.796 billion yuan, an increase of 12.203 million yuan over the same period last year, but the period expense rate was 10.64 percent, down 1.74 percent from the same period last year. Among them, sales expenses decreased by 4.79% compared with the same period last year, management expenses decreased by 6.02%, R & D expenses increased by 10.05%, and financial expenses decreased by 0.68%.

In terms of major changes in assets, by the end of 2023, the company's monetary funds decreased by 9.99% compared with the end of last year, accounting for 1.34% of the company's total assets; fixed assets increased by 0.60% over the end of the previous year, accounting for 0.79% of the company's total assets; accounts receivable increased by 3.12% over the end of last year, accounting for 0.50% of the company's total assets Projects under construction decreased by 27.40% compared with the end of last year, accounting for 0.39 percentage points of the company's total assets.

In terms of major changes in liabilities, by the end of 2023, the company's non-current liabilities due within one year decreased by 39.26% compared with the end of last year, accounting for 3.47 percentage points of the company's total assets; short-term loans decreased by 49.65% compared with the end of last year, accounting for 1.76 percentage points of the company's total assets, mainly due to the repayment of short-term loans in the current period. Accounts payable increased by 9.77% over the end of last year, accounting for 1.42% of the company's total assets; long-term loans increased by 5.10% over the end of last year, accounting for 0.74% of the company's total assets.

From the perspective of inventory changes, by the end of 2023, the book value of the company's inventory was 6.683 billion yuan, accounting for 14.42% of the net assets, a decrease of 2.3493 million yuan compared with the end of last year. Among them, the stock price reduction is prepared to be 403 million yuan, with a provision proportion of 5.69%.

For the whole of 2023, the company's R & D investment was 2.317 billion yuan, an increase of 10.05% over the same period last year; R & D investment accounted for 4.25% of operating income, down 0.26% from the same period last year. In addition, the company's annual R & D investment capitalization rate is 0.

In terms of solvency, the asset-liability ratio of the company at the end of 2023 was 39.95%, down 3.40 percentage points from the end of the previous year; and the interest-bearing asset-liability ratio was 19.73%, down 4.50 percentage points from the end of the previous year.

In 2023, the current ratio of the company is 1.47 and the quick ratio is 1.12.

According to the annual report, among the top 10 tradable shareholders of the company at the end of 2023, Lance Technology (Hong Kong) Co., Ltd. held the most shares, accounting for 56.28%. The list of the top ten tradable shareholders remains unchanged compared with the third quarterly report of 2023. In terms of specific shareholding ratio, the shareholdings of Hong Kong Securities Clearing Co., Ltd., Yi Fangda gem traded open index securities investment fund and Hua an gem 50 traded open index securities investment fund have increased. Lance Technology (Hong Kong) Co., Ltd., Changsha Qunxin Investment Consulting Co., Ltd., Changsha Leader New Industry Investment Partnership (Limited Partnership), China State-owned Enterprise structural Adjustment Fund Co., Ltd., Hunan Caixin Jing Equity Investment Partnership (Limited Partnership), Shanghai Junhe Licheng Investment Management Center (Limited Partnership)-Ningbo Junji Equity Investment Partnership (Limited Partnership), The shareholding of Shenzhen Zhongda Investment holding Co., Ltd. has declined.

In terms of chip concentration, by the end of 2023, the total number of shareholders in the company was 146700, down 1107, or 0.75%, from the end of the third quarter; the value of stock market holdings per household rose to 448200 yuan from 413100 yuan at the end of the third quarter, an increase of 8.50%.

Indicator Notes:

Price-earnings ratio

= total market capitalization / net profit. When the company loses money, the price-to-earnings ratio is negative, so it is of no practical significance to use the price-to-earnings ratio or the price-to-sales ratio as a reference.

Price to book ratio

= total market capitalization / net assets. The price-to-book ratio valuation method is mostly used for companies whose earnings fluctuate greatly and their net assets are relatively stable.

Market sales ratio

= total market capitalization / operating income. The valuation method of price-to-sales ratio is usually used for growth companies that are losing money or making small profits.

In this paper, the price-to-earnings ratio and price-to-sales ratio are calculated by TTM, that is, based on the 12-month data up to the latest financial report (including forecast). The price-to-book ratio is calculated on the basis of LF, which is based on the latest financial report.

When the price-to-earnings ratio is negative, the current quantile is not displayed, which will lead to the interruption of the line chart.

(article source: China Securities News, China Securities Network)