Sinoma Science & Technology (SZ:002080) Guotai Junan Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for the company [4] - The target price is set at 22.18, down from the previous forecast of 23.36 [4] - The current price is 15.45 [4] Core Insights - The company's annual performance aligns with expectations, with total revenue of 25.889 billion, a slight increase of 0.29% year-on-year, while net profit attributable to shareholders decreased by 10.73% to 2.224 billion [4][3] - The report highlights ongoing price pressure across the three main business segments: fiberglass, blades, and membranes, leading to a downward adjustment in earnings per share (EPS) forecasts [4][3] - Fiberglass sales remain strong at 135.7 million tons, with a robust performance in Q4 2023, but profitability is under pressure due to declining prices [4][3] - The blade segment saw a recovery in shipments, totaling 21.6 GW for the year, with net profit of 5.9 billion, although profit margins are still affected by low industry prices [4][3] - The membrane business experienced a significant increase in shipments, up 53% year-on-year, but profitability has declined due to intensified competition [4][3] Financial Summary - Total revenue for 2023 is reported at 25.889 billion, with a projected increase to 29.830 billion in 2024 and 40.242 billion by 2026 [3] - Net profit is expected to decrease slightly to 2.153 billion in 2024, with a recovery to 3.312 billion by 2026 [3] - The company's gross margin is projected to stabilize around 24.6% in 2024, with a net profit margin of 7.2% [3] - The return on equity (ROE) is forecasted to decline to 9.7% in 2024, before recovering to 10.7% by 2026 [3]