DKEM(300842) 招商证券·2025-04-03 05:08Investment Rating - The report initiates coverage with a "Buy" rating for the company [1][3]. Core Views - The company is a leading player in the photovoltaic conductive paste sector, capitalizing on opportunities during multiple iterations of domestic production, mono and multi-crystalline transitions, and the switch to N-type technology, resulting in rapid business expansion [7][11]. - The innovative TOPCon high-copper paste solution utilizes silver-coated copper powder to significantly reduce costs by replacing a large proportion of silver powder with lower-cost copper, which is compatible with high-temperature processes while maintaining electrical performance and reliability [7][11]. - If the company successfully collaborates with downstream customers, mass production is expected within the year, which will enhance both scale and profitability [1][7]. Financial Data and Valuation - The company forecasts total revenue of 9.6 billion RMB in 2023, growing to 15.4 billion RMB in 2024, representing a year-on-year increase of 155% and 60% respectively [2]. - The projected net profit attributable to shareholders is expected to reach 385 million RMB in 2023 and 360 million RMB in 2024, with significant growth anticipated in subsequent years [2]. - The company maintains a high return on equity (ROE) of 21.5% and a debt-to-asset ratio of 78.6% [3][2]. Company Overview - Established in 2010, the company focuses on the research, production, and sales of conductive paste for photovoltaic cells, becoming the first domestic company to list in this sector in 2020 [11][12]. - The company has expanded into the semiconductor field since 2019, leveraging its core technology platform to introduce packaging and printed electronic pastes [11][21]. - The company has maintained a strong R&D focus, with R&D expenses consistently accounting for 3-4% of total revenue [24][11]. Market Position and Growth - The company has achieved a leading position in the N-type paste market, with a significant increase in shipments, particularly in 2023, where sales volume surged by 138% to 1714 tons [40][42]. - The company is actively involved in the technological iteration of photovoltaic materials, adapting to the rapid transition from P-type to diverse N-type technologies, which enhances its competitive edge [40][42]. - The anticipated completion of the silver nitrate project in 2025 is expected to further stabilize the supply chain and reduce material costs [40][41].