KINGLAI MATERIALS(SZ:300260) China Post Securities·2025-02-14 05:15Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within six months [3][11]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 245-280 million yuan in 2024, representing a year-on-year growth of 3.86%-18.69%. This growth is driven by a recovery in domestic semiconductor market demand and accelerated domestic substitution of key semiconductor components [2]. - The company anticipates improvements in gross margins in 2024 due to increased investments in the semiconductor sector and a decline in raw material prices in the food industry [2]. - The company plans to leverage the domestic shift in the semiconductor supply chain to expand its market presence in the semiconductor equipment and components sector, expecting high growth in this business segment [2]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 3 billion, 3.45 billion, and 4 billion yuan respectively, with net profits of 264 million, 354 million, and 461 million yuan respectively. The corresponding price-to-earnings ratios (PE) are 38, 28, and 22 [3][8]. - The company’s revenue growth rates are projected at 10.75%, 14.91%, and 15.95% for the years 2024, 2025, and 2026 respectively [8][10]. - The gross margin is expected to improve from 25.6% in 2023 to 26.8% in 2026, while the net profit margin is projected to increase from 8.7% to 11.5% over the same period [10].