Changzhou Fusion New Material (688503) 东吴证券·2024-11-20 06:26Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 9.83 billion yuan for Q1-Q3 2024, representing a year-on-year increase of 32.8%. However, the net profit attributable to shareholders decreased by 4.5% to 420 million yuan [2] - The gross margin for Q3 2024 was 4.6%, down 7.6 percentage points year-on-year, primarily due to declining silver prices affecting profitability [3] - The company is actively expanding its product offerings, with a focus on increasing self-supply of silver powder and successfully introducing new products in the market [3] Financial Performance Summary - Total revenue for 2022 was 6.504 billion yuan, increasing to an estimated 14.235 billion yuan in 2024, reflecting a growth rate of 38.33% [1] - The net profit attributable to shareholders is projected to grow from 442.08 million yuan in 2023 to 584.74 million yuan in 2024, a year-on-year increase of 32.27% [1] - The latest diluted EPS is expected to rise from 1.83 yuan in 2023 to 2.42 yuan in 2024 [1] Operational Insights - The company experienced a decline in silver paste shipments in Q3 2024, with a total of over 450 tons shipped, a decrease of 27% quarter-on-quarter and 26% year-on-year [3] - The company has improved its self-supply of silver powder, achieving over 10% self-supply in Q3 2024, with plans for a new 3000-ton silver powder project to commence production by Q1 2025 [3] - The company has optimized its expense ratio, with a total expense of 410 million yuan for Q1-Q3 2024, reflecting a year-on-year increase of 35.4% [4]