SOKAN(688157) 海通证券·2024-06-18 01:01Investment Rating - The report maintains an "Outperform" rating for the company [52] Core Views - The company is a leading domestic coatings enterprise with significant advantages in technology, product offerings, and production capacity [54] - The company is expected to benefit from the recovery of the consumer electronics market and the rise of domestic substitution in the automotive coatings sector [54] - The company has the potential to leverage its PVD technology to expand into the automotive parts coatings market [54] Automotive Coatings Market - The global automotive coatings market is vast, with a market size of approximately 140 billion USD in 2021, with overseas companies dominating the market [3][113] - The domestic automotive coatings market is also largely controlled by foreign brands, with the top five foreign brands accounting for 43% of the market in 2021 [3] - The company has been expanding its automotive coatings business, with revenue from this segment growing from 4 million CNY in 2019 to 99 million CNY in 2023 [22] 3C Coatings Market - The company is a leader in the domestic 3C coatings market, ranking second in the 2022 national 3C coatings TOP 10 list [16][72] - The company's 3C coatings account for 83% of its revenue in 2023, with the mobile phone segment contributing 46% of the revenue [22] - The company's 3C coatings have superior performance indicators, with UV silicone touch coatings achieving 1000 friction cycles in denim friction tests, twice the requirement of downstream customers [17] Technological Advantages - The company has developed seven core technologies, including PVD coatings for automotive parts, which have passed aging tests of up to 2000 hours [11] - The company's PVD coatings technology has significant advantages in terms of environmental friendliness, performance, and appearance, making it a trend to replace traditional water electroplating in the automotive parts sector [117] - The company's UV silicone touch coatings have achieved a water contact angle of ≥118°, surpassing the industry average [26] Financial Performance - The company's revenue in 2023 was 590 million CNY, a year-on-year increase of 18.19%, while net profit attributable to the parent company was 81 million CNY, a slight decrease of 0.94% [26] - The company's asset scale has been expanding, with total assets increasing from 571 million CNY in 2019 to 1.411 billion CNY in 2022, while maintaining a low debt-to-asset ratio of around 10% [125] Future Growth Path - The company is expected to replicate the growth path of Kansai Paint, a leading global coatings company, by expanding overseas and broadening its product categories [56] - The company plans to focus on developing automotive coatings while maintaining its core 3C business, aiming to become a "new functional coating system solution provider" [140]