RAYITEK(SH:688323) Shanxi Securities·2024-03-25 16:00Investment Rating - The report maintains a "Buy-B" rating for the company [2][10]. Core Views - The company's performance in 2023 was negatively impacted by a price war in the thermal control PI film sector, leading to a significant decline in revenue. However, new production capacity is expected to support recovery in 2024 [2][5][10]. - The company achieved a total revenue of 276 million yuan in 2023, a decrease of 8.55% year-on-year, with a net profit attributable to shareholders of -19.6 million yuan, down 150.43% year-on-year [4][10]. - The company is focusing on expanding its market presence in the electrical and electronic PI film sectors, which saw revenue growth of 28.86% and 19.37% respectively in 2023 [3][6]. Financial Performance Summary - In 2023, the company reported a total revenue of 276 million yuan, down from 302 million yuan in 2022, with a net profit of -19.6 million yuan [4][10]. - The gross margin for 2023 was 26.52%, a decrease of 11.72 percentage points compared to the previous year, primarily due to reduced demand in the global electronics market and increased competition [6][10]. - The company’s R&D expenses increased by 19.06% year-on-year, reflecting its commitment to developing new products in flexible displays, new energy, and integrated circuit packaging [6][10]. Future Projections - The company is projected to achieve revenues of 468 million yuan, 655 million yuan, and 778 million yuan in 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 69.7%, 40.0%, and 18.6% [10]. - Net profits are expected to recover significantly, reaching 22 million yuan in 2024, 57 million yuan in 2025, and 100 million yuan in 2026, with corresponding year-on-year growth rates of 213.7%, 155.3%, and 75.9% [10].