DING LONG(SZ:300054)2024-04-22 06:30Investment Rating - The investment rating for the company is "Accumulate" [1][4]. Core Views - The report highlights that the company's semiconductor materials revenue has shown year-on-year growth, with Q4 2023 polishing pad revenue reaching a record high for a single quarter. The report maintains a positive outlook on the company's semiconductor business layout advantages and the progress of new product development and introduction, sustaining the "Accumulate" rating [1][4]. Summary by Sections Financial Performance - In 2023, the company achieved revenue of 2.667 billion RMB, a decrease of 2.00% year-on-year, and a net profit attributable to shareholders of 222 million RMB, down 43.08% year-on-year. Q4 2023 revenue was 795 million RMB, up 3.72% year-on-year and 11.42% quarter-on-quarter, with a net profit of 46 million RMB, down 51.97% year-on-year and 43.09% quarter-on-quarter [4][6][7]. - The company's gross margin for 2023 was 36.95%, a decrease of 1.14 percentage points year-on-year, while the expense ratio increased by 2.89 percentage points to 12.06% [4]. Business Segments - The company's printing and copying consumables business generated revenue of 1.786 billion RMB, down 8.08% year-on-year, with a gross margin of 24.85%, down 3.60 percentage points. The optoelectronic semiconductor materials and chip business reported revenue of 857 million RMB, down 18.82% year-on-year, with a gross margin of 61.48%, down 6.21 percentage points [4]. - The report notes significant growth in CMP materials, with polishing pad revenue of 418 million RMB, down 8.65% year-on-year, but Q4 2023 revenue reached 149 million RMB, up 25.68% quarter-on-quarter and 49.21% year-on-year, marking a historical high for a single quarter [4]. Product Development - The company has made progress in the development and introduction of new products, with polishing liquids and cleaning liquids revenue increasing significantly. Polishing liquids revenue reached 77 million RMB, up 330.84% year-on-year, with Q4 2023 revenue of 28.9 million RMB, up 32.96% quarter-on-quarter and 294.61% year-on-year [4]. - The report indicates that the company has become a primary supplier for several mainstream panel customers and has successfully developed and introduced various core materials for semiconductor packaging [4]. Valuation - The report adjusts the earnings forecast for 2024-2026, estimating EPS of 0.44 RMB, 0.71 RMB, and 0.92 RMB, respectively, with corresponding PE ratios of 45.5, 28.5, and 21.8 times. The "Accumulate" rating is maintained based on the company's improving semiconductor materials layout and ongoing new product development [4][5].