分区域看，23 年公司境内/境外收入22.9/25.7 亿元，同比-24.1%/+65.2%，境外收入大幅增长。23 年公司主要子公司蚌埠中恒/凯盛应材/深圳国显净利润0.9/1.3/0.5 亿元，同比-16.3%/-28.9%/-46.8%，新整合的太湖石英实现净利润1396 万元，高纯石英砂业务开始为公司利润产生贡献。Yearly revenue/net profit to mother +6.2%/-24.4% YoY, maintaining “buying”
In '23, the company achieved revenue/net profit attributable to mother/ net profit of 50.1/1.1/-50 billion yuan, compared to +6.2%/-24.4%/-0.5 billion yuan (adjusted), and net profit attributable to mother was lower than our expectations (150 million); of these, 23Q4 revenue/net profit net attributable to mothers/ net profit excluding net profit of 6.6/0.1/-60 billion yuan, year-on-year, -29.8%/-69.2%/-0.2 billion yuan, mainly due to increased credit impairment and asset disposal losses. We expect the company's 24-26 net profit to be $2.1/3.1/370 million (CAGR +30.5% for 23-25). Comparatively, the company Wind's consistent expected average value corresponds to 1.1xPEG in 24 years. Considering that the company's high-purity quartz sand, UTG and other products are highly scarce, and the high target growth rate of equity incentives is expected to inject vitality into the company's growth, giving the company 2.0xPEG for 24 years, with a target price of 13.41 yuan to maintain a “purchase.”
Overseas revenue increased sharply year-on-year, and gross margin declined due to rising business costs in applied materials, and the company's sales volume of new materials/new displays/new display materials/ultra-thin electronic glass was 40,000 tons/0.2 billion pieces/0.3 billion square meters, +6.7%/-7.4%/+30.4%/+56.4% year-on-year. Display materials/applied materials revenue was 32.7/1.58 billion yuan, +4.7%/+9.5% year over year, gross margin was 11.2%/18.7%, -2.4/-9.5 pct year on year. The sharp rise in applied materials costs led to a decrease of 3.9 pct in the company's overall gross margin.
Looking at the subregion, the company's domestic/overseas revenue in '23 was 22.9/2.57 billion yuan, -24.1%/+65.2% year-on-year, with a significant increase in overseas revenue. In '23, the company's main subsidiaries, Bengbu Zhongheng/Kaisheng Yingcai/Shenzhen Guoxian had a net profit of 0.9/1.3/50 million yuan, or -16.3%/-28.9%/-46.8%. The newly integrated Taihu Quartz achieved net profit of 13.96 million yuan, and the high-purity quartz sand business began to contribute to the company's profit.
The financial/R&D expense ratio declined markedly, and the net operating cash flow weighed on the 23-year company expense ratio of 12.2%, -1.7 pct. Among them, sales/management/R&D/finance expenses rates were 2.0%/4.7%/4.4%/1.2%, respectively, -0.1/+0.2/-0.7/-1.2pct. The significant decline in the financial expense ratio was mainly due to a decrease in interest expenses. At the end of 23, the company's balance ratio and interest-bearing debt ratio were 56.0%/32.9%, respectively, compared to +2.4/+2.7pct. Short-term liabilities increased but long-term liabilities decreased. The company's net operating cash flow in '23 was 130 million yuan, -67.7% year over year, and -0.2 billion yuan in Q4, -30 billion yuan year over year, mainly due to an increase in cash from purchasing and receiving labor payments.
The UTG and high-purity quartz sand projects are progressing steadily, helping equity incentives to achieve a high growth rate. According to the company's annual report, the company's UTG Phase II project has completed the construction of 4 production lines. At the same time, it is also matching the one-time molding of UTG original films and the new UTG/UFG processing technology under continuous development. It is expected to reach the scheduled state of use in December '24. In terms of applied materials, large-scale equipment such as fluidized bed reactors and distillation towers for the semiconductor silicon dioxide project with an annual output of 5,000 tons has been completed. At the end of 23, the company announced an equity incentive plan. The performance assessment target was based on the 20-22 average net profit deducted from non-return mother, and the 24-26 compound growth rate was not less than 180%/124%/90%. The high growth target reflects the company's confidence in future development, and the smooth progress of projects such as UTG and high-purity quartz sand is expected to provide strong support for performance growth.
Risk warning: demand for folding screens falls short of expectations, UTG production line construction falls short of expectations, product iteration risks.
