SUNMUN TECHNOLOGY(SZ:300522) Tianfeng Securities·2024-10-18 07:39Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of over 20% within the next six months [5][13]. Core Views - The company plans to raise up to 310 million yuan through a private placement, primarily for a project to produce 5,000 tons of LCD display photoresist special nano pigment dispersions [1][2]. - The expected annual revenue from the project upon full production is projected to be 1.05 billion yuan, with a net profit of 145 million yuan [2]. - The company has been developing its photoresist products since 2018 and is now entering the mass production phase, addressing a critical need for domestic alternatives in the market [3][4]. Summary by Sections Financial Data and Valuation - The company’s revenue is expected to grow from 681.59 million yuan in 2023 to 2.01 billion yuan in 2026, reflecting a compound annual growth rate (CAGR) of approximately 45.48% [4][8]. - The net profit attributable to the parent company is forecasted to increase significantly from 18.01 million yuan in 2023 to 336.22 million yuan in 2026, indicating a strong recovery and growth trajectory [4][8]. - The earnings per share (EPS) is projected to rise from 0.06 yuan in 2023 to 1.04 yuan in 2026 [4][8]. Industry Context - The domestic market for color photoresists is currently dominated by Japanese and Korean companies, which hold over 75% market share, highlighting a significant opportunity for domestic producers [3]. - The company’s focus on developing specialized nano pigment dispersions for LCD displays positions it well to capitalize on the growing demand for localized production in this critical material sector [3][4].