Changzhou Fusion New Material (SH:688503) Minsheng Securities·2024-10-31 13:00Investment Rating - The report maintains a "Recommended" rating for the company, projecting a strong performance in the coming years [1][3]. Core Views - The company achieved a revenue of 9.826 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 32.80%. However, the net profit attributable to shareholders decreased by 4.47% to 421 million yuan [1]. - The company is focusing on enhancing its N-type silver paste production, which is expected to drive future growth as the demand shifts from P-type to N-type materials in the photovoltaic industry [1]. - A significant investment of 1.2 billion yuan is planned for establishing a high-end photovoltaic electronic materials base in Changzhou, which will enhance raw material supply and cost reduction [1]. - The company is diversifying its product offerings beyond photovoltaic silver paste, developing new materials for the energy sector, including conductive adhesives and thermal conductive gels [1]. Financial Summary - Revenue projections for 2024, 2025, and 2026 are 13.552 billion yuan, 15.378 billion yuan, and 17.084 billion yuan, respectively, with growth rates of 31.7%, 13.5%, and 11.1% [2][4]. - The net profit attributable to shareholders is expected to be 548 million yuan in 2024, increasing to 698 million yuan in 2025 and 873 million yuan in 2026, with growth rates of 23.9%, 27.3%, and 25.1% respectively [2][4]. - The report indicates a projected PE ratio of 23X for 2024, decreasing to 14X by 2026, reflecting the company's anticipated growth and profitability improvements [2][4].