同时公司公布一季度报告，2024Q1 单季度，公司实现营业收入5.23 亿元，同比+25.90%，环比+7.18%；实现归母净利润为1.22 亿元，同比+45.64%，环比+13.89%；扣非后归母净利润1.16 亿元，同比+53.61%，环比+8.28%；经营活动现金流净额为1.07 亿元，同比-0.09 亿元，环比-0.23 亿元。销售毛利率为31.02%，同比+3.72pct，环比-2.27pct；销售净利率为23.40%，同比+3.16pct，环比+1.38pct。Incidents:
On April 25, 2024, Chengcheng Co., Ltd. released its 2023 annual report and report for the first quarter of 2024: achieved operating income of 1,810 billion yuan in 2023, up 3.66% year on year; realized net profit of 413 million yuan, up 8.42% year on year; realized net profit without return to mother of 394 million yuan, up 8.91% year on year; gross sales margin 29.44%, up 0.87 pct year on year; net sales margin was 22.78%, up 1.00 pct year on year; net cash flow from operating activities was 390 million yuan Yuan, a year-on-year decrease of 0.25 billion yuan.
In the 2023Q4 quarter, the company achieved operating income of 488 million yuan, +17.13% year over month; realized net profit of 107 million yuan, +55.17% year on year, -5.22% month on month; net profit after deducting non-return to mother was 107 million yuan, +63.61% year on year, -2.36% month on month; net cash flow from operating activities was 130 million yuan, +67 million yuan year on month, and +0.17 billion yuan month on month. Gross sales margin was 33.29%, +2.40pct year on year, +0.88pct month on month; net sales margin was 22.01%, +5.38pct year on year, -1.96pct month on month.
At the same time, the company announced the first quarter report. In a single quarter of 2024Q1, the company achieved operating income of 523 million yuan, +25.90% year over month; realized net profit of 122 million yuan, +45.64% year on month, +13.89% month on month; net profit after deducting non-return to mother was 116 million yuan, +53.61% year on month, +8.28% month on month; net cash flow from operating activities was 107 million yuan, year on year -0.09 million yuan and -0.23 million yuan month on month. Gross sales margin was 31.02%, +3.72 pct year on month, -2.27 pct month on month; net sales margin was 23.40%, +3.16 pct year on year, +1.38 pct month on month.
Investment highlights:
Silica production and sales increased in 2023, and operating profit rose slightly to achieve operating income of 1,810 billion yuan in 2023, up 3.66% year on year; realized net profit of 413 million yuan, up 8.42% year on year. Among them, in 2023, the company achieved gross profit of 533 million yuan, +33.97 million yuan; expenses for the period were 80.36 million yuan, +25.9 million yuan; asset impairment losses were 560,000 yuan. Losses increased 4.73 million yuan year on year, credit impairment losses increased 2.69 million yuan, and losses increased 6.71 million yuan year on year. The cash flow from the company's operating activities in 2023 was $390 million, a year-on-year period of -$23 million. In terms of period expenses, the company's sales expenses in 2023 were 0.66%, +0.23pct; management expenses were 3.48%, -0.21pct year on year; R&D expenses were 3.45%, -0.05pct year on year; financial expenses were -3.15%, +1.35pct year on year, respectively.
In terms of silicon dioxide production and sales, in 2023, the company achieved silicon dioxide production volume of 297,800 tons, +18.55% year over year; achieved sales volume of 297,900 tons of silicon dioxide, +19.04% year on year; achieved revenue of 1,782 million yuan, +8.12% year on year; realized gross profit of 539 million yuan, +10.15% year on year; and silicon dioxide business gross profit margin of 30.22%, +0.55pct year on year.
In 2023, Q4 achieved net profit of 107 million yuan, down 5.99 million yuan from the previous month, and achieved gross profit of 162 million yuan, an increase of 9.14 million yuan over the previous month, an increase of 38.4 million yuan over the previous month, an increase of 15.32 million yuan over the previous month, an investment income of 2.16 million yuan, a decrease of 3.3 million yuan over the previous month, income tax expenses of 10.59 million yuan, a decrease of 7.55 million yuan from the previous month.
Affected by changes in downstream market demand, 2024Q1's performance was under pressure. According to the company's first quarter results report, 2024Q1 achieved net profit of 122 million yuan, an increase of 14.94 million yuan over the previous month. Net profit in Q1 2024 increased significantly year over year, mainly due to lower raw material prices and increased sales volume. 2024Q1 achieved gross profit of 162 million yuan, a decrease of 220,000 yuan. In terms of expenses, 2024Q1 sales expenses were 3.73 million yuan, a decrease of 1.45 million yuan; management expenses were 15.5 million yuan, an increase of 1.26 million yuan; R&D expenses were 16.88 million yuan, a decrease of 2.75 million yuan; and financial expenses were -13.8 million yuan, a decrease of 13.14 million yuan. The credit impairment loss for 2024Q1 was -1.22 million yuan, down 1.59 million yuan from the previous month.
Enrich product categories, and promote R&D and production companies that make white carbon black from rice husk ash will accelerate the commercial application of new products in the silicone rubber, toothpaste and other industries on the basis of steadily increasing the international market share of green tire high-dispersion silica products, increase the utilization rate of dedicated line production capacity, and accelerate the implementation of technological transformation projects using biomass (rice husk) instead of natural gas as fuel, and using rice husk ash generated by rice husk combustion as silicon-based to replace quartz sand. Actively strive to promote commercialized production of the silica microsphere project incubated by the company.
Optimistic that production capacity under construction will be put into operation to provide an increase
Currently, it has a production capacity of 330,000 tons of white carbon black, and the production capacity under construction is 100,000 tons. It is expected to be put into operation in December 2024. We are optimistic that the new production capacity will contribute to an increase.
Profit forecasts and investment ratings estimate that the company's 2024-2026 revenue will be 2,208, 27.42 billion yuan, and 2,981 billion yuan, respectively, and net profit to mother will be 520, 6.05, and 680 million yuan respectively, corresponding to PE 14, 12, and 11 times, respectively. Covered for the first time, considering the company's technical advantages, a “buy” rating.
Risks suggest that the progress of new production capacity construction falls short of expectations, the contribution performance of new production capacity falls short of expectations, fluctuations in raw material prices, changes in environmental protection policies, and a sharp decline in the economy.
