Snowsky Salt(SH:600929) Southwest Securities·2024-04-10 16:00Investment Rating - The report maintains a "Hold" rating for Xue Tian Salt Industry (600929) with a current price of 6.07 CNY and a target price not specified for the next six months [3][22]. Core Views - The company reported a revenue of 6.262 billion CNY in 2023, a decrease of 2.77% year-on-year, and a net profit attributable to shareholders of 709 million CNY, down 7.86% year-on-year. Despite this, the company is optimizing its product structure and has seen a 31% increase in sales volume of 171,500 tons in its domestic market [3][20]. - The company is expanding its production capacity, which is expected to drive future growth. Several projects have been completed, including energy-saving upgrades and new production facilities, which are anticipated to significantly reduce production costs [3][20]. - The company has a strong commitment to shareholder returns, with a cash dividend of 2.00 CNY per 10 shares, totaling approximately 332 million CNY, which represents 46.82% of the net profit for the year [3][20]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 62.62 billion CNY, with a year-on-year decline of 2.77%. The net profit attributable to shareholders was 7.09 billion CNY, down 7.86% [3][4]. - The company’s product sales showed a positive trend, with high-end salt sales increasing by 33.8% year-on-year [3][20]. Production Capacity Expansion - The company has completed several key projects, including energy-saving upgrades and new production facilities, which are expected to enhance production efficiency and reduce costs significantly [3][20]. - The new production capacity is projected to contribute to revenue growth in the coming years [3][20]. Dividend Policy - The company has maintained a high dividend payout ratio, with a cash dividend of 2.00 CNY per 10 shares, reflecting a strong cash flow performance [3][20]. - The historical dividend payout ratios from 2020 to 2023 have been consistently high, averaging over 50% [3][20]. Earnings Forecast - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 0.52 CNY, 0.54 CNY, and 0.55 CNY, respectively, with corresponding dynamic price-to-earnings (PE) ratios of 12, 11, and 11 [3][20].