The company released its 2023 annual report and 2024 quarterly report. In 2023, the company achieved revenue of 3.363 billion yuan, +11.01% year-on-year, and realized net profit of 32 million yuan, or -88.86% year-on-year. In the first quarter of 2024, the company achieved revenue of 859 million yuan, +11.05% year-on-year, and realized net profit of 61 million yuan, or -296.73% year-on-year.
Guided by market demand, we make every effort to promote R&D and innovation. The company has established four major R&D platforms for new energy materials, electron-grade high-purity chemicals, electrolyte R&D testing, and battery preparation and evaluation. It has achieved full coverage from synthesis to application. Through continuous R&D investment, the company has mastered the core technology of the entire industry chain with intellectual property rights, and formed a relatively complete quality control and product development system. As of December 31, 2023, the company has 109 authorized patents, including 47 invention patents and 62 utility model patents; it has participated in the formulation of 8 national standards, industry standards and group standards. The company attaches great importance to R&D investment and R&D system construction. As of December 31, 2023, the company has 110 R&D personnel, accounting for 11% of the total number of employees, and 5 core technicians. Together, it has formed a R&D team with reasonable professional structure and strong professional and technical capabilities, providing strong technical support for the R&D and innovation of the company's products.
Master high-quality core customer resources and steadily improve our position as a global leader. The company has been deeply involved in lithium battery electrolyte solvents and fine chemicals business for 20 years. Relying on the company's comprehensive advantages in technology, R&D, quality, etc., the company has reached long-term strategic partnerships with leading downstream customers, and has accumulated high-quality core customer resources. It has occupied an A position in leading electrolyte companies such as Tianci Materials, BYD, Ruitai New Materials, and Central Glass.
Through downstream customers, we cover world-renowned car companies and lithium-ion battery giants such as Tesla, BYD, Ningde Times, LG, Samsung SDI, and Panasonic. Some customers of alcohol products are well-known domestic and foreign companies such as L'Oréal, Johnson & Johnson, Unilever, Wanhua Chemical, Aipu Co., Ltd., and Perea.
Profit forecasting and investment ratings. We expect the company's net profit from 2024 to 2026 to be 52 million yuan, 110 million yuan, and 323 million yuan for EPS, respectively, 0.24 yuan, 0.49 yuan, and 1.45 yuan, respectively, according to 2024E BPS 14.25 yuan and 1.4-1.5 times PB (corresponding to 83.13-89.08 times PE in 2024, the company's products are highly cyclical. Currently, industry sentiment is low, and using PB valuation is more indicative than PE valuation), corresponding to a reasonable value range of 19.95- 21.38 yuan, maintaining the “better than the market” rating.
Risk warning: Prices of raw materials and products fluctuate greatly, project construction and commissioning progress falls short of expectations, downstream demand falls short of expectations, production safety and environmental compliance risks.