DKEM(SZ:300842) Capital Securities·2024-04-13 16:00Investment Rating - The investment rating for the company is "Buy" [3][4]. Core Views - The company reported a revenue of 9.603 billion yuan for 2023, representing a year-on-year growth of 154.94%. The net profit attributable to shareholders reached 386 million yuan, a staggering increase of 2336.51% year-on-year [4]. - The company's N-type silver paste sales volume reached 1,713.62 tons in 2023, a year-on-year increase of 137.89%, with N-type silver paste accounting for 58.85% of total shipments, indicating a leading position in the industry [4]. - The LECO paste is rapidly increasing in volume, benefiting from a first-mover advantage, and is expected to significantly increase production as battery manufacturers switch to LECO technology [4]. - The company invested 310 million yuan in R&D in 2023, a year-on-year increase of 169.52%, which accounted for 3.23% of its revenue, aimed at enhancing product competitiveness [4]. - Profit forecasts for the company indicate net profits of 640 million yuan, 790 million yuan, and 890 million yuan for 2024, 2025, and 2026 respectively, with corresponding earnings per share of 6.35 yuan, 7.82 yuan, and 8.82 yuan [5]. Financial Summary - The company's total assets are projected to grow from 67.85 billion yuan in 2023 to 99.95 billion yuan by 2026 [6]. - Revenue is expected to increase from 9.603 billion yuan in 2023 to 18.062 billion yuan in 2026, with a revenue growth rate of 12.5% in 2026 [5][6]. - The net profit margin is projected to stabilize around 4.9% by 2026, with a return on equity (ROE) of approximately 27.0% [6].