KIN LONG's net profit forecast for 2023 has increased by over 388%
With the end of 2023, companies from all walks of life have released their annual performance reports. Among them, KIN LONG (002791) has attracted widespread market attention with its impressive performance forecast. According to the company's performance forecast, it is expected that the net profit for the whole year of 2023 will reach 320 million to 340 million yuan, with a year-on-year growth rate of 388.11% to 418.61%. At the same time, the net profit after deducting non income also shows a significant growth trend, expected to reach 273 million to 289 million yuan, a year-on-year increase of 611.17% to 652.86%.
The achievement of this performance is attributed to the good performance of KIN LONG in overall production and operation. As one of the largest hardware production enterprises for doors, windows, and curtain walls in China, KIN LONG has been committed to the research and development, production, and sales of high-end building hardware systems and building components. In the past year, the company has continued to follow the strategic plan of one-stop integrated supply of building accessories, continuously enriched its product structure, expanded new products and markets, and achieved a year-on-year growth of 2-3% in operating revenue.
In addition to the increase in operating revenue, KIN LONG also benefited from the decrease in raw material prices. It is understood that the overall price of bulk raw materials will decrease in 2023, which is undoubtedly a great benefit for KIN LONG, which mainly relies on raw materials as its main cost. The company recently revealed during an institutional survey that the prices of raw materials such as zinc alloy and stainless steel have decreased relatively significantly, while aluminum alloy has also declined. This has led to an increase in the company's product gross profit margin this year, with the overall gross profit margin remaining at around 32%, showing a year-on-year growth trend.
In response to market changes, KIN LONG has also shown a positive attitude. In recent years, with the continuous changes in macroeconomic and external environment, the construction industry has also faced multiple challenges such as market downturn and demand fluctuations. However, KIN LONG is able to adjust its business around changes in demand and actively explore new growth points.
It is understood that the integrated supply model of building accessories gradually developed by KIN LONG has accumulated some experience and achievements in new market scenarios. For example, in new scenarios such as schools, hospitals, small and medium-sized hotels, and factories, KIN LONG has successfully found a part that can make up for the decline in real estate business by providing one-stop integrated supply services for building accessories, and has built new growth points for the company's business.
In addition, KIN LONG is actively expanding its overseas market by establishing subsidiaries and offices overseas, setting up reserve warehouses, and adopting a direct sales model to expand its overseas market. At present, the overseas market has become one of the important performance growth sectors of the company. According to the company, the overseas market share in the third quarter has reached about 12%, and the overall performance is good.
KIN LONG expressed full confidence in its future market prospects. Although the growth rate of the Chinese construction market has temporarily slowed down, there is still significant room for development in the existing market and opportunities brought by some replacement markets. The diverse and fragmented demand for construction brings survival and development opportunities to industrial chain enterprises. The business model of KIN LONG's integrated supply of building accessories will play an important role in finding new business support for the company during the industry downturn.
In summary, KIN LONG achieved significant performance growth in 2023 and actively responded to market changes to build new growth points. In the future, with the continuous expansion of the company's business and the continuous growth of market demand, KIN LONG is expected to continue to maintain a stable development trend.
*Originally from Lock World, if involved in copyright issues, please contact us for prompt deletion.