HHCK(SH:688535) ZHONGTAI SECURITIES·2024-04-07 16:00Investment Rating - The report assigns a "Buy" rating to the company, expecting a relative increase of over 15% in stock price compared to the benchmark index over the next 6 to 12 months [13]. Core Insights - The company has shown resilience in a challenging market, with a slight revenue decline of 6.7% year-on-year in 2023, achieving approximately 283 million in revenue [11][12]. - The net profit for 2023 was approximately 31.64 million, reflecting a significant year-on-year decrease of 23.26% [11]. - The company is focusing on advanced packaging materials, with products like GMC and bottom filling glue expected to see increased production [11][12]. - The report highlights the company's strong R&D efforts, particularly in advanced packaging, which is anticipated to drive future growth [11]. Financial Summary - Revenue for 2023 was approximately 283 million, with a projected increase to 345 million in 2024, representing a growth rate of 22% [11]. - The net profit is expected to recover to approximately 51.78 million in 2024, indicating a growth rate of 64% compared to 2023 [11]. - The gross margin for 2023 was reported at 26.88%, with a slight decrease of 0.13 percentage points year-on-year [11]. - The company’s total assets are projected to grow from 1,230 million in 2023 to 1,320 million in 2024 [16]. Market Position - The company is positioned as a leader in epoxy encapsulation materials in China, with a focus on high-barrier and difficult-to-validate advanced packaging products, which are expected to provide growth elasticity and scarcity in the market [11].