Levima Advanced Materials Corporation(003022) Huaxin Securities·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's earnings are expected to recover, with the new materials platform providing long-term growth potential [2][4] - In 2023, the company reported a revenue of 6.778 billion yuan, a year-on-year decline of 16.91%, and a net profit attributable to shareholders of 446 million yuan, down 48.50% year-on-year [2][3] - The decline in revenue and profit is primarily attributed to the pressure on EVA prices and a decrease in demand from key downstream sectors [2][3] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 6.778 billion yuan, with EVA sales revenue decreasing by 28.62% [2][3] - The gross margin for EVA fell by 10.1 percentage points to 40.95% due to weak market demand and price competition [2][3] Future Outlook - The company anticipates a recovery in earnings for 2024, with projected revenues of 9.326 billion yuan, representing a growth rate of 37.6% [4][6] - The company is set to launch multiple new production facilities, which will enhance EVA cost reduction and increase high-margin product categories [3][4] Production Capacity - The company currently has an EVA production capacity of over 150,000 tons per year, with additional capacity of 200,000 tons planned to be operational by 2025 [3] - The company is also developing a 300,000 tons per year POE project, expected to enhance its competitive edge in the photovoltaic sector [3][4] Earnings Forecast - The forecast for 2024-2026 indicates revenues of 9.326 billion yuan, 11.966 billion yuan, and 14.245 billion yuan respectively, with corresponding EPS of 0.57 yuan, 0.96 yuan, and 1.36 yuan [4][6] - The current stock price corresponds to a PE ratio of 28.8, 17.1, and 12.1 for the years 2024, 2025, and 2026 respectively, reflecting the company's growth potential [4][6]