SUN PAPER(SZ:002078) EBSCN·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a stable revenue performance in 2023, with total revenue and net profit attributable to shareholders at 39.54 billion and 3.09 billion yuan, respectively, showing a year-on-year change of -0.56% and +9.86% [1][2] - The company is accelerating its integrated layout of forestry, pulp, and paper, which is expected to enhance its competitive edge in production costs [2][4] - The report projects revenue for 2024, 2025, and 2026 at 45.18 billion, 55.13 billion, and 62.48 billion yuan, respectively, with corresponding net profits of 3.64 billion, 4.41 billion, and 5.25 billion yuan [2][3] Summary by Sections Revenue Performance - In 2023, the company achieved revenue of 39.54 billion yuan, with a slight decline of 0.56% year-on-year, while net profit increased by 9.86% to 3.09 billion yuan [1][3] - The revenue breakdown includes significant contributions from various paper products, with notable growth in coated cultural paper and life paper [1] Profitability - The gross margin for 2023 improved by 0.7 percentage points to 15.9%, driven by cost reductions in raw materials and effective expense management [1][4] - The report indicates that the company's net profit margin for 2023 was 7.8%, with projections for further improvement in the coming years [3][4] Future Projections - The company is expected to maintain a strong growth trajectory, with EPS forecasts of 1.30, 1.58, and 1.88 yuan for 2024, 2025, and 2026, respectively [2][3] - The report highlights the company's ability to navigate economic cycles effectively, supported by its integrated business model [2][4]