PACIFIC QUARTZ(603688) Guotai Junan Securities·2024-04-09 16:00Investment Rating - The investment rating for the company is "Accumulate" with a target price of 165.00 CNY, maintaining the previous rating of "Accumulate" [1][2]. Core Views - The company has shown strong performance in the semiconductor sector, with significant growth in revenue from quartz tube and rod business, indicating a new growth driver. The high-purity sand prices remain stable despite some pressure on shipments due to downstream production reductions [1][2]. - The company achieved a total revenue of 71.84 billion CNY in 2023, representing a year-on-year increase of 258%, with a net profit of 50.39 billion CNY, up 379% [1][2]. - The company plans to distribute a cash dividend of 57 CNY per share, reflecting a payout ratio exceeding 50%, emphasizing shareholder returns [1][2]. Summary by Sections Financial Performance - The company reported a total revenue of 7,184 million CNY in 2023, with a significant increase in operating profit to 5,885 million CNY, and a net profit attributable to shareholders of 5,039 million CNY [2]. - The earnings per share (EPS) for 2023 is reported at 13.95 CNY, with forecasts for 2024 and 2025 at 15.44 CNY and 16.10 CNY respectively [1][2]. Market Position - The company is positioned as a leading player in the quartz products industry in China, focusing on high-end quartz tubes, rods, and high-purity quartz sand [2]. - The company has established itself as a key supplier for mainstream battery equipment manufacturers, with significant growth in revenue from photovoltaic quartz products [1][2]. Future Outlook - The company anticipates continued high growth in the semiconductor sector, with revenue from semiconductor-related products expected to maintain a high growth rate [1][2]. - Despite facing some pricing pressure in high-purity sand due to increased supply, the company maintains a strong market position due to high resource and technical barriers [1][2].