KINGLAI MATERIALS(SZ:300260)2024-07-16 12:30Investment Rating - The investment rating for the company is "Accumulate," indicating that the stock price is expected to outperform the benchmark index by 10%-20% over the next 6-12 months [4][9]. Core Views - The semiconductor business has shown significant growth, while the food business has remained stable despite market challenges [14]. - The company is expected to maintain a strong position in the semiconductor sector, with increased R&D and sales investments [15]. - The food business has demonstrated resilience, maintaining market share despite a decrease in customer demand due to consumption downgrading [15]. Financial Summary - The company's main revenue (in million RMB) is projected to grow from 2,620 in 2022 to 4,415 by 2026, with a growth rate of 27.5% in 2022 and a forecasted 14.0% in 2026 [2][5]. - EBITDA is expected to fluctuate, with a decrease from 548 in 2022 to 421 in 2023, before rising to 857 by 2026 [2][5]. - Net profit attributable to the parent company is forecasted to decline from 345 in 2022 to 236 in 2023, then recover to 595 by 2026, reflecting a growth rate of 103.0% in 2022 and a decline of 31.6% in 2023 [2][5]. - The latest diluted earnings per share (EPS) is projected to decrease from 0.85 in 2022 to 0.58 in 2023, with a recovery to 1.46 by 2026 [2][5]. - The price-to-earnings (P/E) ratio is expected to decrease from 22.8 in 2022 to 13.2 by 2026, indicating a more attractive valuation over time [2][5]. Market Context - The semiconductor market is experiencing a recovery in demand, which is expected to positively impact the company's order flow [15]. - The company is positioned to benefit from domestic substitution trends due to international restrictions on semiconductor technology exports to China [15].