Novoray(SH:688300) Huajin Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 41.77 CNY [1][2]. Core Insights - The company achieved a record high quarterly revenue in Q4 2023, with a revenue of 201 million CNY, representing a year-on-year growth of 15.33% and a quarter-on-quarter growth of 2.08% [1]. - The overall revenue for 2023 reached 712 million CNY, marking a year-on-year increase of 7.51%, while the net profit attributable to shareholders decreased by 7.57% to 174 million CNY due to increased R&D expenses and reduced foreign exchange gains [1][2]. - The company is focusing on the high-end spherical powder market, implementing strategies such as optimizing product layout, enhancing technological innovation, and actively expanding production capacity [1]. Financial Performance - The company’s revenue is projected to grow to 900 million CNY in 2024, 1.1 billion CNY in 2025, and 1.281 billion CNY in 2026, with growth rates of 26.4%, 22.2%, and 16.5% respectively [1][2]. - The net profit for 2024 is expected to be 240 million CNY, with a growth rate of 37.9% [2]. - The gross margin is anticipated to improve from 39.3% in 2023 to 40.0% in 2024 [1][2]. Market Position and Strategy - The company is well-positioned to benefit from the growing demand for spherical silicon micro-powder driven by advancements in 5G, AI, and advanced packaging technologies [1]. - The company has launched various specifications of low-cut point low α micron/ sub-micron spherical silicon powder and high thermal conductivity micro/ sub-micron spherical aluminum powder for new energy batteries [1]. - The company plans to invest 129 million CNY to establish a production line for ultra-fine spherical powder for advanced integrated circuits, further expanding its production capacity [1].