GUIBAO TECH(SZ:300019)2024-02-06 16:00Investment Rating - The investment rating for Chengdu Guibao Science & Technology Co., Ltd. is "OUTPERFORM" with a target price of RMB 18.40, reflecting a 12% downside from the current price [20][53]. Core Insights - The company achieved a net profit attributable to shareholders of RMB 315 million in 2023, representing a year-on-year growth of 25.9%. Revenue was RMB 2.61 billion, down 3.30% year-on-year, while recurring net profit increased by 33.88% to RMB 306 million [34][51]. - The company solidified its leadership in the silicone sealant industry, with production and sales exceeding 180,000 tons, up over 25% year-on-year, and an increase in market share. Sales of construction adhesives grew steadily, while industrial adhesives saw rapid growth in sectors such as photovoltaics, power batteries, electronics, and automotive [52][59]. Financial Performance - The company's total revenue for 2023 is projected at RMB 2.61 billion, with a slight decline of 3.30% compared to 2022. The net profit is expected to grow to RMB 3.15 billion in 2023, with further increases to RMB 3.62 billion in 2024 and RMB 4.16 billion in 2025 [20][53]. - The gross profit margin is expected to stabilize, with projections of 24.3% in 2023, 24.4% in 2024, and 24.5% in 2025 [29][55]. Production Capacity and Utilization - The production capacity utilization for silicone sealants is expected to increase gradually, with estimates of 66%, 70%, and 77% for the years 2023 to 2025 respectively. For silane coupling agents, the utilization is projected to remain stable at 100% during the same period [1][23]. Strategic Developments - The establishment of Chengdu Guibao Science & Technology (Shanghai) Co., Ltd. aligns with the company's diversified growth strategy, leveraging Shanghai's international advantages to enhance R&D and marketing capabilities [28][35]. - The company is investing in advanced silicone material research and industrialization projects, including a new 5,000-ton/year production line for electronic and optical encapsulation materials [28][35].