2024Q1 performance increased sharply year on year, with high-end products driving rapid performance growth, maintaining that “buy” rated companies achieved revenue of 5.727 billion yuan, +11.21% year over year; net profit to mother of 1,581 billion yuan, +5.07% year over year; deducted non-net profit of 1,221 billion yuan, +0.05% year over year; gross profit ratio of 39.83%, -4.27pcts year over year.
2023Q4 achieved revenue of 1,621 billion yuan in a single quarter, +35.56% YoY, +9.77% month-on-month; net profit of 439 million yuan, +67.52% YoY, +6.80% month-on-month; net profit of 343 million yuan, +92.56% YoY, +11.12% month-on-month; gross profit margin 39.96%, -1.81 pcts YoY, +0.08pcts month-on-month. 2024Q1 achieved revenue of 1,564 billion yuan in a single quarter, +31.49% year over month, -3.53% month on month; net profit to mother of 433 million yuan, +35.31% year on month, -1.35% month on month; net profit of 388 million yuan, +57.40% year on month, +10.19% month on month; gross profit margin of 40.14%, +0.73 pcts year on month, +0.18 pcts month on month. We consider that the downstream recovery progress falls short of expectations, lowered 2024 and 2025, and added 2026 performance expectations. The net profit for 2024-2026 is estimated to be 18.93/23.95/2,817 billion yuan (previous value was 26.24/3.69 billion yuan), corresponding EPS was 0.99/1.25/1.47 yuan (previous value was 1.37/1.93 yuan), and the current stock price corresponding PE is 28.3/22.4/19.0 times. The company is a leading domestic MLCC manufacturer and actively lays out high-end MLCC products are expected to accelerate domestic substitution, gain greater market share, and maintain a “buy” rating.
High-end products have made breakthroughs one after another, boosting the company's performance upward MLCC: the company's MLCC products are developing in the direction of miniaturization, high capacity, high frequency, high reliability, high pressure, etc., to achieve mass production with a thickness of 1 micron, with more than 1000 layers. The products cover mainstream specifications of 0201 to 2220 sizes, and the downstream application fields are becoming more and more extensive, driving the company's electronic components and materials business revenue +50.32% year over year. In the future, as the electronics industry gradually recovers and the company's high-end products break through, the electronic components business is expected to maintain rapid growth. SOFC: The power density of the company's SOFC cogeneration system increased by 43% and carried out reliability tests for more than 2,000 hours. The initial power generation efficiency reached 65%, and the cogeneration efficiency reached more than 90%. It is currently the SOFC system with the highest stand-alone power and power generation efficiency in China.
Risk warning: downstream demand falls short of expectations; capacity release falls short of expectations; technology research and development falls short of expectations; customer introduction falls short of expectations.