Novoray(688300)2024-10-23 06:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 52.80, based on a reasonable valuation of 40x PE for 2024 [2][10]. Core Insights - In the first half of 2024, the company's net profit is expected to grow rapidly, with projections of RMB 110-125 million, representing a year-on-year increase of 51%-71% [9][10]. - The company is focusing on high-end spherical products for applications in AI, 5G, and HPC chip packaging, among others, and plans to invest RMB 130 million in a new production line for ultra-fine spherical powders [10] [9]. Financial Summary - The company forecasts net profits for 2024-2026 to be RMB 246 million, RMB 306 million, and RMB 363 million, with corresponding EPS of RMB 1.32, RMB 1.65, and RMB 1.95 [2][10]. - Revenue is projected to grow from RMB 712 million in 2023 to RMB 905 million in 2024, reflecting a year-on-year growth rate of 27.2% [3][7]. - The gross margin is expected to improve from 39.3% in 2023 to 41.5% in 2024, indicating better profitability [3][7]. Business Segmentation - The company’s revenue from angular silicon powder is projected to be RMB 233.22 million in 2024, with a gross margin of 33% [4]. - Revenue from spherical silicon powder is expected to reach RMB 368.93 million in 2024, with a gross margin of 48% [4]. - Other silicon powders are projected to generate RMB 108.84 million in revenue in 2024, with a gross margin of 29.48% [4].