DMEGC(SZ:002056) Minsheng Securities·2024-03-09 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][30]. Core Insights - In 2023, the company achieved a revenue of 19.721 billion yuan, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 1.816 billion yuan, up 8.8% year-on-year. The non-recurring net profit was 2.025 billion yuan, reflecting a significant growth of 26.6% year-on-year [7][10]. - The fourth quarter of 2023 saw a revenue of 3.964 billion yuan, a decrease of 25.6% year-on-year and 28.1% quarter-on-quarter, with a net profit of 166 million yuan, down 64% year-on-year and 62% quarter-on-quarter [7][10]. - The photovoltaic segment remains the largest contributor to revenue, accounting for approximately 64.8% of total revenue, while the lithium battery segment showed the highest revenue growth rate at 31% [10][30]. Summary by Sections Financial Performance - The company reported a gross profit margin increase of 3.25 percentage points to 20.73% in 2023, with the photovoltaic segment contributing significantly to this growth [17][25]. - The gross profit from photovoltaic products increased by 44.8% year-on-year, while the lithium battery segment experienced a decline in gross profit due to falling prices of lithium carbonate [17][30]. Segment Analysis - Photovoltaic Segment: The company has a production capacity of 14GW for photovoltaic cells and 12GW for modules, with a 24% increase in sales volume year-on-year [10][13]. - Lithium Battery Segment: Despite a 75% increase in sales volume, the segment's gross margin fell by 13 percentage points to 7% due to a significant drop in lithium prices [10][30]. - Magnetic Materials and Devices: Both segments showed steady growth, with sales volumes increasing by 7.9% and 20.5% respectively [10][30]. Future Outlook - The company aims for a 50% year-on-year increase in shipments for both photovoltaic and lithium battery products in 2024, alongside a steady development in the magnetic materials and devices segment [10][30]. - Forecasted net profits for 2024-2026 are expected to be 2.088 billion yuan, 2.429 billion yuan, and 2.787 billion yuan respectively, with corresponding EPS of 1.28 yuan, 1.49 yuan, and 1.71 yuan [30][34].