Sytech(SH:600183) East Money Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Accumulate" [3]. Core Views - The company faced performance pressure in 2023 due to weak demand and intense industry competition, with a revenue decline of 7.93% year-on-year to 16.586 billion yuan and a net profit drop of 23.96% to 1.164 billion yuan. The fourth quarter saw a revenue of 4.239 billion yuan, down 2.30% year-on-year and 5.11% quarter-on-quarter [2][4]. - The company is expected to see a recovery in 2024, with projected revenues of 18.965 billion yuan, representing a growth of 14.34% [4][5]. - The company is making significant progress in AI and advanced packaging fields, with high-end products gaining certification from major AI server manufacturers, indicating a potential turning point for profitability as copper-clad laminate prices are expected to rise [1][4]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 16.586 billion yuan, a decrease of 7.93% year-on-year, and a net profit of 1.164 billion yuan, down 23.96% year-on-year. The fourth quarter revenue was 4.239 billion yuan, with a net profit of 0.265 billion yuan, reflecting a year-on-year decline of 20.67% [2][5]. - The gross margin for 2023 was 19.24%, down 2.79 percentage points year-on-year, while the net margin was 6.93%, down 2.13 percentage points year-on-year [1][2]. Business Segments - The revenue from copper-clad laminates and bonding sheets was 12.632 billion yuan, down 9.76% year-on-year, while PCB revenue was 3.135 billion yuan, down 7.90% year-on-year [2][5]. - The company is focusing on high-end products in the AI and packaging sectors, which are expected to drive future growth [1][4]. Future Projections - Revenue projections for 2024, 2025, and 2026 are 18.965 billion yuan, 21.659 billion yuan, and 24.005 billion yuan, respectively, with corresponding net profits of 1.648 billion yuan, 1.965 billion yuan, and 2.322 billion yuan [4][5]. - The expected EPS for 2024, 2025, and 2026 are 0.70 yuan, 0.83 yuan, and 0.99 yuan, with P/E ratios of 25, 21, and 17, respectively [4][5].