SQM(SH:688138) Haitong Securities·2024-06-28 05:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1][8]. Core Views - The company has seen a significant increase in revenue from AMOLED/LTPS products, reaching 297 million yuan in 2023, a year-on-year growth of 43.91%. This growth is driven by the demand for flat panel display mask plates as manufacturers enhance their new product development efforts [7]. - The company is expected to achieve revenues of 1.109 billion yuan, 1.406 billion yuan, and 1.834 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding net profits of 191 million yuan, 216 million yuan, and 281 million yuan [8][23]. - The company has successfully achieved mass production of high-precision TFT mask plates and is enhancing its production capabilities for AMOLED/LTPS and MicroLED mask plates, which is expected to further boost its overall production capacity [7][22]. Summary by Sections Market Performance - The company's stock has shown a relative performance of 11.0%, 26.6%, and 25.8% over 1 month, 2 months, and 3 months respectively compared to the CSI 300 index [2]. Financial Forecast and Valuation - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.71 yuan, 0.81 yuan, and 1.05 yuan respectively. The company is valued at a price-to-earnings (PE) ratio of 35.0-38.0X for 2024, leading to a reasonable market capitalization of 6.672-7.244 billion yuan, with a target price range of 25.01-27.15 yuan per share [8][12]. Revenue Growth - The company reported a total revenue of 924 million yuan in 2023, a year-on-year increase of 21.26%. The gross profit margin for the same year was 27.62%, up by 2.42 percentage points from the previous year [21][23].