Qingdao Gaoce(SH:688556) Guotai Junan Securities·2024-03-03 16:00Investment Rating - The report maintains a "Buy" rating for Gaoce Co., Ltd. (688556) with a target price of 37.82 CNY, down from the previous target of 41.40 CNY [12][18]. Core Views - The company's performance meets expectations, with a focus on the recovery of the photovoltaic industry in the second half of 2023 [12][18]. - Gaoce Co., Ltd. has a strong position in the cutting equipment market, with significant growth in orders for cutting materials and equipment [12][18]. - The company is expanding its production capacity in silicon wafer processing, with a total planned capacity of 102GW [12][18]. Summary by Sections Financial Performance - In 2023, Gaoce Co., Ltd. achieved operating revenue of 6.184 billion CNY, representing a year-on-year increase of 73.19% [12][18]. - The net profit attributable to shareholders was 1.461 billion CNY, up 85.32% year-on-year [12][18]. - The company reported a fourth-quarter revenue of 1.973 billion CNY, a year-on-year increase of 42.97% [12][18]. Production Capacity - The company has reached a full production capacity of 21GW in 2022 and is currently expanding its cutting capacity to 38GW by the end of 2023 [12][18]. - Gaoce Co., Ltd. has established long-term partnerships with major photovoltaic companies, enhancing its market position [12][18]. Market Position - Gaoce Co., Ltd. holds a leading market share in the cutting equipment sector, with a robust order backlog and a strong reputation for its products [12][18]. - The company is recognized for its innovative business model in the semiconductor and sapphire material sectors, indicating significant market potential [12][18].