CAPCHEM(SZ:300037) Donghai Securities·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for the company [3] Core Views - The company's performance has been under pressure, with a significant decline in revenue and net profit for 2023. The total revenue for 2023 was 7,484 million, down 22.53% year-on-year, and the net profit attributable to shareholders was 1,011 million, a decrease of 42.50% [8][9] - Despite the challenges in the electrolyte market, the company is actively expanding its overseas market presence and has seen a 10.11 percentage point increase in overseas revenue, which accounted for 25.22% of total revenue in 2023 [8] - The organic fluorochemical segment achieved record profitability, with revenue of 1,425 million, up 21.45% year-on-year, and a gross margin of 69.91% [8] Summary by Relevant Sections Financial Performance - In Q4 2023, the company reported revenue of 1,901 million, down 18.47% year-on-year, and a net profit of 214 million, down 32.33% [8] - The battery chemical business generated revenue of 5,053 million, a decline of 31.74%, despite a 47.41% increase in sales volume to 211,200 tons [8] Future Projections - The company is projected to achieve revenues of 9,011 million, 11,180 million, and 14,011 million for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 20.40%, 24.07%, and 25.32% [9][12] - Net profit forecasts for the same period are 1,213 million, 1,629 million, and 2,232 million, with corresponding year-on-year growth rates of 19.96%, 34.32%, and 37.00% [9][12] Market Position and Strategy - The company is recognized as a leader in the electrolyte market and is focusing on cost control and efficiency improvements, with material costs down 24.35%, labor costs down 19.05%, and energy costs down 29.22% [8] - The company is advancing its fluorochemical production capacity, with the Haidefu project progressing well and expected to reach full operational status by mid-2024 [8]