First(SH:603806) Soochow Securities·2025-04-10 03:01Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing rapid development in its second growth curve, with a 38% year-on-year increase in the shipment of photosensitive dry film, and is expected to maintain high growth in 2025 [3] - The electronic materials business is diversifying, with projected revenue of 740 million yuan and profit of 43 million yuan in 2024, alongside a 29% increase in aluminum-plastic film shipments [3] - The company is focusing on high-end product demands, particularly in AI and chip packaging substrate areas, which is expected to contribute to a growth rate of over 30% in 2025 [3] Financial Summary - Total revenue for 2023 is reported at 22,589 million yuan, with a projected decline of 15.23% in 2024, followed by a recovery with expected growth rates of 12.58%, 14.11%, and 14.08% in the subsequent years [1][12] - The net profit attributable to shareholders is forecasted to be 1,308 million yuan in 2024, down 29.33% from the previous year, with a recovery expected in 2025 to 1,630 million yuan, reflecting a growth of 24.66% [1][12] - The earnings per share (EPS) is projected to be 0.50 yuan in 2024, increasing to 1.13 yuan by 2027, indicating a positive trend in profitability [1][12] Market Data - The closing price of the company's stock is 12.53 yuan, with a market capitalization of approximately 32,687.47 million yuan [7] - The company has a price-to-earnings (P/E) ratio of 25.00 for the current price and latest diluted earnings [1][12] Operational Efficiency - The company has significantly improved its operating cash flow, reporting 4,389 million yuan in 2024, a substantial year-on-year improvement [11] - Inventory levels have decreased by approximately 40% year-on-year, indicating better inventory management [11]