Core views
In the first three quarters of 2023, Shuangxing New Materials achieved operating income of 3,914 billion yuan, a year-on-year decrease of 18.61%; realized net profit of 46 million yuan, a year-on-year decrease of 94.04%; corresponding to Q3, achieved revenue of 1,352 billion yuan, a year-on-year increase of 1.98%; realized net profit of 17 million yuan, a year-on-year decrease of 68.42%, a year-on-year decrease of 34.61%; net profit after deduction of 14 million yuan, a year-on-year decrease of 125.90%, a year-on-year decrease of 203.67%. The company's overall operating scale in 23Q3 increased, revenue improved month-on-month from Q2, and the total profit of the 23Q3 company was 17 million yuan, an improvement over Q2 of 115 million yuan. Currently, the overall profit of the BOPET industry is still under pressure, and the company's profit is expected to gradually improve as downstream demand recovers. Furthermore, the company insists on R&D innovation and promotes collaborative development in the five major sectors.
occurrences
On October 29, the company released its report for the third quarter of 2023: the first three quarters of 2023 achieved operating income of 3,914 billion yuan, a year-on-year decrease of 18.61%; realized net profit of 46 million yuan, a year-on-year decrease of 94.04%; and realized net profit after deduction of 13 million yuan, a year-on-year decrease of 99.82%. Among them, the corresponding Q3 quarter achieved revenue of 1,352 billion yuan, a year-on-year increase of 1.98%, net profit of 17 million yuan, a year-on-year decrease of 68.42%, a decrease of 34.61% over the previous year; net profit after deduction of net profit of 14 million yuan, a year-on-year decrease of 125.90% and a decrease of 203.67% over the previous year.
Brief review
Q3 The scale of revenue and total profit increased month-on-month, and the overall profit of the industry was still under pressure. The first three quarters of 2023 achieved operating income of 3,914 billion yuan, a year-on-year decrease of 18.61%; realized net profit of 46 million yuan, a year-on-year decrease of 94.04%; and realized net profit of 13 million yuan after deduction, a decrease of 99.82% over the previous year. Among them, the corresponding Q3 quarter achieved revenue of 1,352 billion yuan, a year-on-year increase of 1.98%, net profit of 17 million yuan, a year-on-year decrease of 68.42%, a decrease of 34.61% over the previous year; net profit after deduction of net profit of 14 million yuan, a year-on-year decrease of 125.90% and a decrease of 203.67% month-on-month. The company's overall operating scale in 23Q3 increased, revenue improved month-on-month from Q2, and the total profit of the 23Q3 company was 17 million yuan, an improvement over Q2 of 115 million yuan. Currently, the overall profit of the BOPET industry is still under pressure, and the company's profit is expected to gradually improve as downstream demand recovers.
Adhering to R&D innovation to promote the development of new products, the five major sectors collaborated in the first three quarters of 2023. The company invested a total of 162 million yuan in R&D expenses, firmly promoting the development of new materials in strategic emerging industries, targeting major industry trends, and forming collaborative development of new materials in five major market segments. In the optical materials sector, the company has increased the layout of MLCC release films, and the first phase of 500 million square meters of MLCC release film production capacity construction and market development are progressing steadily. The four-layer composite film has been supplied in batches. In terms of market development, after becoming a global supplier of Samsung optical films, the company accelerated the expansion of the domestic market, and the domestic market share of optical films increased steadily. In the new energy materials sector, the company is actively promoting the “enhanced PET project” and the “coated composite backboard project” to steadily expand project production capacity with a view to further increasing market share. In the composite copper foil sector, the company signed the first PET composite copper foil project order, achieving a major breakthrough from 0 to 1. Up to now, the first phase of composite copper foil production capacity construction has progressed in an orderly manner, and related equipment has entered the site one after another for installation and commissioning. In the variable information materials sector, the company has carried out comprehensive cooperation with well-known enterprises at home and abroad. The concentration of downstream customers is high, and the customer advantage is obvious. In the heat shrinkable materials sector, the company has established cooperation with major domestic brand customers. The company currently has a production capacity of 50,000 tons of PETG heat shrinkable film and a production capacity of 100,000 tons under construction. The company's market share has further increased after production capacity is released. In the polyester functional film sector, the company actively faces industry challenges. Through measures such as production line transformation, the company improves production and operation efficiency, closely follows the needs of end customers, and adjusts the product structure to achieve stable business operation.
Profit forecast and valuation: The company's net profit for 2023, 2024, and 2025 is estimated to be 0.76, 3.04, and 510 million yuan respectively; EPS is 0.1 yuan, 0.3 yuan, and 0.4 yuan respectively; corresponding PE is 138X, 35X, and 21X respectively.