收入端同环比持续增长，1Q24 扣非归母净利润大幅增长：公司4Q23 实现收入7.5 亿元，同比增长17.4%，环比增长15%，1Q24 实现收入7.72 亿元，同比增长36.65%，环比增长3%，公司收入端同环比持续增长，我们认为主要原因为公司零部件及靶材行业景气度恢复较快；1Q24 公司毛利率达31.5%，环比增加2.9ppt，销售/管理/研发费用率分别为3.0/6.0/7.2%，环比下滑0.9/2.6/0.2ppt，其中管理费用率下滑显著，我们认为主要原因为公司规模效应导致成本控制能力显现；1Q24 公司归母净利润达0.6 亿元，同比增长7.16%，扣非归母净利润达0.7 亿元，同比增长94.64%。2023 and 1Q24 results exceeded our expectations
The company announced its 2023 and 1Q24 results: the company achieved revenue of 2,602 billion yuan in 2023, a year-on-year increase of 12% and net profit of 255 million yuan, a year-on-year decrease of 3.7%, higher than our expectations; in 1Q24, the company achieved revenue of 772 million yuan, up 36.65% year on year, and net profit of 60 million yuan, up 7.16% year on year, higher than our expectations. We believe the main reason is that the semiconductor target industry and parts industry are recovering faster than we expected.
Development trends
The revenue side continued to grow month-on-month, with 1Q24 net profit increasing significantly: the company achieved revenue of 750 million yuan, up 17.4% year on year, up 15% month on month; 1Q24 achieved revenue of 772 million yuan, up 36.65% year on year, up 3% month on month, and the company's revenue side continued to grow year on month. We think the main reason is that the company's parts and target industry is recovering rapidly; 1Q24's gross margin reached 31.5%, up 2.9ppt month-on-month, and sales/management/R&D expense ratios were 3.0/6.0/ 7.2%, down 0.9/2.6/0.2ppt from month to month. We believe that the main reason was the company's ability to control costs due to the size effect of the company; the 1Q24 company's net profit to mother reached 60 million yuan, up 7.16% year on year, and net profit after deducting non-return to mother reached 70 million yuan, up 94.64% year on year.
The target material business increased slightly year on year, and production capacity continued to expand: in 2023, the company's ultra-high purity target business revenue was 1,673 billion yuan, up 3.79% year on year. The company continued to increase R&D investment and equipment expansion projects, and planned to build a new target material production plant in South Korea. At the same time, copper-manganese alloy targets have been mass-produced. We believe it is expected to further increase the market share and international competitiveness of the company's products.
The parts business grew rapidly, and the product line was further enriched: in 2023, the company's parts business achieved revenue of 570 million yuan, an increase of 58.55% over the previous year. The company actively promoted production capacity construction, fully laying out metal and non-metallic components, gas distribution plates, silicon electrodes, etc. In addition, the company's holding subsidiary Jiang Feng Tongxin's high-end copper-clad ceramic substrates have been initially recognized by the market. The holding subsidiary Jingfeng Xinchi's silicon carbide epitaxial sheet products have been recognized by many customers, and the product line has been further enriched.
Profit forecasting and valuation
We keep the company's profit forecast unchanged. We expect the company to achieve operating income of 31.18/4,056 billion yuan and net profit to mother in 2024/2025. The current stock price corresponds to the company's 32.6/22.2x P/E in 2024/2025. We use the SOTP valuation method to value the company, maintain the 2024 valuation ratio of 25x P/E for the company's target materials and other businesses, and maintain the 2026 valuation ratio of 30x P/E for the semiconductor components business, and keep the target price unchanged at 57.5 yuan. Corresponding to the company's 2024/2025 44.9/30.6x P/E, there is still room for an increase of 37.8% compared to the current stock price, maintaining an outperforming industry rating.
risks
The release of production capacity falls short of expectations, downstream demand for components falls short of expectations, and the risk of fluctuating raw material prices.
