Yangling Metron New Material (SZ:300861) Huaxin Securities·2024-06-28 07:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is a leader in the photovoltaic diamond wire industry, experiencing temporary profit pressure due to a decline in industry chain prices [1] - In Q1 2024, the company achieved revenue of 857 million yuan, a year-on-year decrease of 13.83%, with a net profit of 195 million yuan, down 48.46% year-on-year [1] - The company focuses on R&D as its core strategy, possessing independent intellectual property rights in key production technologies [1] - The decline in diamond wire prices since the second half of last year is expected to stabilize, allowing the company to increase market share [1] Summary by Sections Company Overview - The company shipped 12,866.43 million kilometers of diamond wire in 2023, a growth of 33.81% compared to 2022 [1] - The current stock price is 19.5 yuan, with a total market value of 9.4 billion yuan [1] Financial Performance - Revenue projections for 2024-2026 are 27.7 billion yuan, 32.9 billion yuan, and 41.7 billion yuan respectively, with EPS estimates of 1.22 yuan, 1.48 yuan, and 1.95 yuan [1][8] - The current PE ratios are 16.0, 13.2, and 10.0 for the years 2024, 2025, and 2026 respectively [1] Industry Outlook - The industry is undergoing a clearing process, with tungsten wire opening up new growth opportunities for the company [1] - The report anticipates that as diamond wire prices approach a bottom, the company will benefit from an increase in the proportion of tungsten wire sales [1]