Inner Mongolia OJing Science & Technology (SZ:001269)2024-06-23 03:31Investment Rating - The report maintains an "Outperform" rating for the company with a target price adjusted to RMB 41.16, down from RMB 72.10 [5][32]. Core Insights - The company reported a revenue of RMB 3.129 billion in 2023, representing a year-on-year growth of 118.2%, and a net profit of RMB 654 million, with a year-on-year growth of 174.3% [27][31]. - In Q1 2024, the company experienced a significant decline in revenue to RMB 340 million, a year-on-year decrease of 46.6%, and a net profit of RMB 22 million, reflecting a year-on-year decline of 87.4% [13][31]. - The decline in profitability in Q1 2024 was attributed to a substantial decrease in downstream customer orders, leading to a gross profit margin drop to 14.94% [31][32]. Summary by Sections Financial Performance - The company achieved a revenue of RMB 3.129 billion in 2023, with a net profit of RMB 654 million [27][31]. - The Q4 2023 revenue was RMB 804 million, showing a quarter-on-quarter decline of 7.8%, and a net profit of RMB 65 million, down 63.8% [13][31]. - For Q1 2024, revenue was RMB 340 million, with a net profit of RMB 22 million, marking significant declines both year-on-year and quarter-on-quarter [13][31]. Production Capacity and Market Position - The company currently operates 24 production lines and plans to add 180,000 units/year in capacity through a convertible bond investment project [14][28]. - The total capacity after expansions will reach 324,000 units/year, positioning the company to hold a 29.43% market share among leading quartz crucible manufacturers [14][28]. - The company has completed R&D for 32-inch semiconductor-grade quartz crucibles and has begun mass production of 28-inch variants [14][28]. Investment Outlook - The report estimates net profits for 2024-2026 to be RMB 478 million (-77%), RMB 661 million (-72%), and RMB 884 million, respectively [32]. - The company is recognized as a leading domestic manufacturer of quartz crucibles, with competitive advantages and ongoing improvements in production capacity and upstream cooperation [32].