Changzhou Fusion New Material (SH:688503) Soochow Securities·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a 2024 P/E of 18x [3][7]. Core Views - The company reported a net profit of 446.43 million yuan for 2023, reflecting a year-on-year increase of 14.12%. However, the fourth quarter of 2023 saw a significant decline in net profit, down 94.38% year-on-year [1]. - The company is expanding its production capacity and enhancing its integration by gradually self-supplying silver powder, which is expected to reduce costs and improve competitiveness [2][3]. - The report adjusts the profit forecast for 2023-2025 to 450 million, 740 million, and 950 million yuan respectively, with growth rates of 14%, 66%, and 29% [3]. Financial Performance - Total revenue for 2023 is projected at 10,296 million yuan, a year-on-year increase of 58.30%. The net profit for 2024 is expected to reach 742.01 million yuan, with a growth rate of 66.21% [1][3]. - The company’s earnings per share (EPS) for 2023 is estimated at 2.70 yuan, with a projected P/E ratio of 18.78 [1][3]. - The company’s silver paste shipment for 2023 is approximately 2000 tons, a year-on-year increase of 47%, with expectations for 2024 to reach 3000 tons [7].