Novoray(688300) Great Wall Securities·2024-02-27 16:00Investment Rating - The report maintains an "Overweight" rating for the company, indicating a positive outlook based on expected growth in the advanced packaging market [1]. Core Views - The company is positioned as a leading domestic supplier of functional powder materials, expected to benefit from the rapid growth in the advanced packaging market, projected to reach $78.6 billion by 2028 with a CAGR of 10.6% from 2022 to 2028 [1]. - Forecasted net profits for the company from 2023 to 2025 are estimated at 174 million, 252 million, and 317 million yuan, respectively, with corresponding P/E ratios of 61.8, 42.7, and 34.0 times [1]. Financial Performance Summary - In Q3 2023, the company reported revenue of 197 million yuan, a quarter-on-quarter increase of 16.48%, and a net profit of 52 million yuan, also up 16.9% quarter-on-quarter [5]. - The gross margin for Q3 2023 was 42.78%, reflecting a 3.29 percentage point increase from the previous quarter, while the net profit margin was 26.33%, up 0.11 percentage points [5]. - For the first three quarters of 2023, the company achieved revenue of 511 million yuan, a year-on-year increase of 4.72%, but the net profit decreased by 4.90% to 125 million yuan [9]. Market Position and Growth Opportunities - The company has begun supplying spherical silicon and aluminum products, which are expected to benefit from the HBM packaging materials market [35]. - A new R&D center for advanced functional powder materials for IC applications is planned, aiming to leverage developments in 5G, AI, and HPC [36].