DKEM(SZ:300842) Changjiang Securities·2024-11-07 06:20Investment Rating - The investment rating for the company is "Buy" and is maintained [3]. 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 the parent company was 293 million yuan, a slight increase of 0.07% year-on-year [4][5]. - In Q3 2024, the company achieved a revenue of 3.922 billion yuan, up 49.62% year-on-year, but down 0.5% quarter-on-quarter. The net profit attributable to the parent company was 60 million yuan, down 33.35% year-on-year, but up 4.81% quarter-on-quarter [4][5]. - The company has a strong position in silver paste sales, although Q3 2024 saw a decrease in shipment volume due to weak production schedules in the battery industry. The impact of rising silver prices on performance has diminished, but the decline in silver paste processing fees has negatively affected the company's results [5]. - The company has implemented a neutral hedging strategy for silver prices to mitigate the impact of raw material price fluctuations on its performance. It is actively developing next-generation photovoltaic battery metallization paste solutions and expanding its product applications in semiconductor packaging [6]. Financial Summary - The company is expected to achieve a net profit attributable to the parent company of 500 million yuan in 2024, corresponding to a price-to-earnings (PE) ratio of 13 times [6]. - The current stock price is 46.84 yuan, with a total share capital of 1.407 billion shares and a net asset per share of 11.16 yuan [7]. - The company’s financial projections indicate total revenue of 11.209 billion yuan for 2024, with a gross profit of 1.113 billion yuan, reflecting a gross margin of approximately 10% [10].