Maintain the "overweight" rating. As the company's Q3 performance has achieved double-digit month-on-month growth and new production capacity is about to be put into production, the EPS for 23-25 years has been raised to 1.17,1.53,1.95 yuan (originally 1.07,1.44,1.83 yuan), and the target price has been maintained at 38.98 yuan (corresponding to 26.8 times of PE in 2024).
23Q3 improved month-on-month, slightly exceeding market expectations. In the first three quarters of 2023, the company realized revenue of 351 million yuan, year-on-year + 18.93%, and net profit of 90 million yuan, + 31.12%, of which 23Q3 realized revenue of 136 million yuan, + 31.41% year-on-year, + 17.49%, and net profit of 35 million yuan, + 47.81% and + 18.76%, respectively. We believe that the rapid year-on-year growth of the company's performance is mainly due to the improvement of product sales and profitability, in which the company's 23Q3 gross profit margin is 41.13%, year-on-year + 2.67pct, month-on-month + 2.84pct.
The opening agent and antirust agent will be released soon, which will become a new engine of growth. The products of mouth opening agent and antirust agent have high added value, and the prices in the first half of 22 years are 265,000 yuan / ton and 2900000 yuan / ton respectively. The company's products have excellent performance and have a price advantage compared with foreign suppliers. At present, the opening agent of the company has been successfully introduced into petrochemical enterprises, and the antirust agent has been supplied in small quantities for the global paint giant companies. with the continuous improvement of product recognition, sales are expected to further increase and continue to drive the growth of the company's profits.
Lay out high-end products and develop the second growth curve. In March 2023, the company signed an "entry Agreement" with the Maanshan Municipal Government, planning 20,000 tons of catalyst carrier and waterborne resin respectively, with high added value. The company accelerates its layout in the high-end field, and with the gradual landing of the project, it will contribute the second driving force to the company's performance in the long term. Among them, the company's annual output of 20,000 tons of ultra-fine silica series product project is in accordance with the original plan, is expected to carry out trial production in the fourth quarter of 2023.
Risk hints: production falls short of expectations, raw material prices fluctuate sharply, and market competition aggravates risks.