Ningbo Runhe High-Tech Materials (SZ:300727)2024-03-12 16:00Investment Rating - The report initiates coverage with an OUTPERFORM rating for Ningbo Runhe High-tech Materials, indicating a positive outlook compared to the market [19][24]. Core Viewpoints - Ningbo Runhe is recognized as a leading enterprise in the silicone segment, with applications in electronic information, release agents, new energy, and daily chemicals [19][24]. - The company has a strong market position due to its differentiated high-value product system and a robust international R&D team [23][24]. - The report projects a compound annual growth rate (CAGR) of 29.10% for the company's net profit from 2020 to 2022 [21]. Financial Summary - As of March 12, 2024, the current price is Rmb25.98, with a target price set at Rmb31.20, reflecting a potential upside [23]. - The company’s market capitalization is Rmb3.32 billion (approximately US$0.46 billion) [23]. - The average daily trading volume over the past three months is US$9.62 million [23]. - The company reported a revenue of Rmb854 million for the first three quarters of 2023, a year-on-year decrease of 7.85% [23]. - The projected revenues for 2023, 2024, and 2025 are Rmb1.09 billion, Rmb1.39 billion, and Rmb1.71 billion, respectively [28]. - The report anticipates earnings per share (EPS) of Rmb0.59, Rmb0.78, and Rmb0.98 for the years 2023, 2024, and 2025, respectively [28]. Business Structure - The actual controllers of the company are Ye Jianping and Yu Caijuan, who hold a combined 65.41% of the shares [20]. - The company is focused on expanding its business along the silicone industry chain, particularly in high-value applications [23][28].