JHM(SH:603078)2024-03-17 16:00Investment Rating - The report maintains an "Outperform" rating for Jianghuai Microelectronics (江化微) [6] Core Views - Jianghuai Microelectronics is expected to see significant growth driven by the increasing demand for high-purity reagents and the release of new production capacity, despite short-term pressures from price declines [6][4] - The company reported a revenue of 1.03 billion yuan for 2023, a year-on-year increase of 10%, but a slight decline in net profit [6][12] - The construction of three bases is expected to strengthen the company's competitive position in the high-end product market, although short-term performance may be impacted by the ramp-up of new facilities [6][4] Financial Summary - For 2023, the company achieved a revenue of 1.03 billion yuan, with a net profit of 105 million yuan, reflecting a year-on-year decrease of 1% [6][12] - The fourth quarter of 2023 saw a revenue of 258 million yuan, a year-on-year increase of 6%, but a significant decline in net profit due to price drops and tax rate changes [6][12] - The company’s gross margin for 2023 was reported at 26.1%, with a projected increase in gross margin to 27.9% by 2026 [12][16] Sales and Product Performance - The sales volume of ultra-pure reagents reached 103,300 tons in 2023, with a revenue contribution of 666 million yuan [6][12] - The semiconductor sector generated a revenue of 499 million yuan, while the solar cell sector saw a remarkable growth of 154% year-on-year [6][12] - The average selling price of ultra-pure reagents decreased by 4% year-on-year to 640 yuan/ton [6][12] Future Projections - The company anticipates a 25% annual growth rate in sales volume for ultra-pure reagents from 2024 to 2026, with gradual price increases expected [6][12] - Projected net profits for 2024, 2025, and 2026 are 148 million yuan, 209 million yuan, and 291 million yuan respectively, with corresponding price-to-earnings ratios decreasing from 37 to 19 [12][16]