DKEM(SZ:300842) Huachuang Securities·2024-11-04 09:18Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][15]. Core Views - The company reported a revenue of 11.509 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 88.77%. The net profit attributable to shareholders was 293 million yuan, a slight increase of 0.07% year-on-year [1]. - The company is experiencing short-term pressure on profitability due to industry challenges and fluctuations in silver prices, but it remains a leader in conductive silver paste shipments [1]. - The company is actively expanding its product applications, particularly in the semiconductor sector, and is the first domestic supplier to provide a complete solution for BC battery silver paste [1]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 3.922 billion yuan, a year-on-year increase of 49.62%, but a quarter-on-quarter decrease of 0.50%. The net profit for Q3 was 60 million yuan, down 33.35% year-on-year [1]. - The gross margin for Q3 2024 was 7.60%, down 3.00 percentage points year-on-year, while the net profit margin was 1.53%, down 1.90 percentage points year-on-year [1]. - The company expects to ship between 2,000 to 2,500 tons of silver paste for the year, maintaining its industry-leading position [1]. Financial Forecast - The company’s projected net profits for 2024, 2025, and 2026 are 392 million yuan, 501 million yuan, and 645 million yuan, respectively, with corresponding price-to-earnings ratios of 16, 12, and 10 times [1][2]. - The target price is set at 53.43 yuan, based on a 15x PE ratio for 2025 [1].