occurrences
Recently, Philly released the 2023 Annual Report and the 2024 First Quarter Report. In 2023, the company achieved revenue of 2,091 billion yuan, an increase of 21.59% over the previous year, and realized net profit of 538 million yuan, an increase of 9.98% over the previous year. With 2024Q1, the company achieved revenue of 410 million yuan, a year-on-year decrease of 17.81%; realized net profit to mother was 77 million yuan, a year-on-year decrease of 30.77%.
reviews
1. The 2023 performance grew steadily, and the 2024Q1 performance was under pressure. In 2023, the company achieved revenue of 2,091 billion yuan, up 21.59% year on year, and achieved net profit of 538 million yuan, up 9.98% year on year; gross margin was 49.48%, down 1.74 pcts from the same period last year, but still maintained strong profitability; the four-fee rate was 19.84%, an increase of 2.03% over the same period last year, mainly the R&D expenses rate increased from 9.00% last year to 10.68%. R&D investment has increased dramatically, laying the technical foundation for the rapid growth of the company's future performance. With 2024Q1, the company achieved revenue of 410 million yuan, a year-on-year decrease of 17.81%, and net profit to mother of 77 million yuan, a year-on-year decrease of 30.77%. Due to the cyclicality of the downstream market and the global macroeconomic environment, short-term market demand is under pressure.
2. Rapid increase in production capacity and acceleration of business layout. The company continues to improve the layout and accelerate the increase in production capacity. Projects such as a high-purity quartz sand production base, a new fused quartz material workshop, and an aerofused quartz material factory have been completed one after another. The business layout of the quartz processing sector is progressing steadily, and construction of the Jinan Guangwei High-end Electronics Precision Processing Project has begun. By building a full-industry chain business model, product quality is guaranteed, cost advantages are exploited, and enterprise competitiveness is enhanced.
3. Looking forward to the future, in the aerospace sector, as the leading supplier of quartz glass fiber in the domestic aerospace field, the company will fully benefit from the recovery in demand in the aerospace equipment market. In addition, the company will extend the quartz glass fiber industry chain and expand the fields of quartz glass fiber three-dimensional weaving and quartz glass fiber reinforced composite manufacturing, and the company's product value is expected to increase significantly in the future; in the semiconductor field, with market demand driven and national policy support for semiconductor localization, the company's production and sales of quartz glass materials and products for semiconductors are expected to maintain steady growth; in the optical field, The company is one of the few enterprises engaged in the R&D and manufacture of synthetic quartz glass in China. The Hefei light-emitting mask substrate precision processing project was completed and put into operation. Through customer verification, it is expected to become the company's new performance growth point 4. Profit forecast and investment rating: We expect the company's net profit to the mother for 2024-2026 to be 5.65, 7.01, and 956 million yuan, respectively, up 5%, 24%, and 36% year-on-year. Corresponding to the current stock price PE is 29, 23, and 17 times, respectively, maintaining the “buy” rating.
Risk warning:
Demand for aerospace has fallen short of expectations; product prices have declined; and overseas business has been hampered by strained international relations.