Anhui Estone Materials Technology (SH:688733) Xinda Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Accumulate," with the previous rating being "Buy" [5]. Core Views - The company is experiencing short-term performance pressure, but its diversified layout is expected to create new growth drivers [14]. - The company reported a significant decline in net profit for 2023, with a year-on-year decrease of 83.3% [5]. - The company is focusing on innovation and expanding its product offerings, which may open new growth opportunities [5]. Financial Summary - Total revenue for 2023 is projected to be 465 million, reflecting a year-on-year decrease of 23.0% [5]. - The net profit attributable to the parent company for 2023 is expected to be 25 million, down 83.3% year-on-year [5]. - Gross margin is forecasted to be 26.2% in 2023, a decline from 40.4% in 2022 [5]. - Return on equity (ROE) is anticipated to drop to 1.1% in 2023, compared to 6.5% in 2022 [5]. - Earnings per share (EPS) for 2023 is projected at 0.12 yuan, down from 0.74 yuan in 2022 [5]. - The price-to-earnings (P/E) ratio is expected to rise significantly to 238.44 in 2023, compared to 51.23 in 2022 [5]. - The price-to-book (P/B) ratio is forecasted to decrease to 2.61 in 2023 from 3.33 in 2022 [5]. - The EV/EBITDA ratio is projected to increase to 79.49 in 2023, compared to 38.64 in 2022 [5].