Shanghai Sinyang(SZ:300236) KAIYUAN SECURITIES·2024-04-22 04:00Investment Rating - The investment rating for the company is "Buy" (maintained) [3][22]. Core Views - The company reported a steady revenue growth in Q1 2024, with semiconductor business revenue reaching a record high. However, the coatings segment experienced a decline due to a sluggish market [4][9]. - The company is optimistic about the long-term development of semiconductor materials and maintains its profit forecast for the upcoming years [8][10]. Financial Performance Summary - In Q1 2024, the company achieved a revenue of 297 million yuan, representing a year-on-year increase of 14.01% but a quarter-on-quarter decrease of 13.01%. The net profit attributable to the parent company was 32 million yuan, down 42.53% year-on-year and 38.86% quarter-on-quarter [8][9]. - The semiconductor business generated revenue of 206 million yuan in Q1 2024, up 30.07% year-on-year, while the coatings segment reported revenue of 91 million yuan, down 9.77% year-on-year [9]. - The company’s R&D expenses in Q1 2024 were 46 million yuan, an increase of 51.24% year-on-year, with an R&D expense ratio of 15.50% [10]. Future Earnings Forecast - The company forecasts net profits attributable to the parent company for 2024, 2025, and 2026 to be 225 million, 246 million, and 274 million yuan, respectively, with corresponding EPS of 0.72, 0.79, and 0.87 yuan [8][12]. - The current stock price corresponds to P/E ratios of 44.3, 40.5, and 36.3 for the years 2024, 2025, and 2026, respectively [8][12]. Market Position and Strategy - The company is increasing its investment in R&D and has ongoing employee stock ownership plans, indicating a commitment to the long-term growth of its semiconductor materials business [10]. - The company’s strategic focus on enhancing its semiconductor materials product lineup and market development efforts is expected to drive future growth [9].