SMIC(SH:600810) East Money Securities·2024-04-23 08:00Investment Rating - The report assigns an "Accumulate" rating for the company [4]. Core Views - The company, a leader in the nylon industry, has demonstrated resilience through vertical integration and the introduction of new products, enhancing its competitive edge. The forecast for 2024 indicates a revenue of 143 billion yuan, reflecting a growth rate exceeding 10% [5]. Summary by Relevant Sections Financial Performance - In 2023, the company achieved a revenue of 12.919 billion yuan, a year-on-year decrease of 11.34%, and a net profit attributable to shareholders of 123 million yuan, down 69.06% year-on-year. In Q4 2023, revenue was 3.488 billion yuan, up 11.55% year-on-year but down 7.30% quarter-on-quarter, with a net profit of 53 million yuan, up 160.44% year-on-year but down 49.63% quarter-on-quarter [1]. Product Sales and Pricing - The sales volume of various products showed mixed results, with nylon 66 industrial yarn and nylon 66 chips seeing increases of 2.05% and 28.22% respectively. However, due to price declines, revenues for most products decreased significantly, with nylon 66 tire fabric revenue dropping by 27.07% [1]. Cost Structure - The company’s expense ratios for sales, management, finance, and R&D were 0.72%, 3.98%, 2.40%, and 3.24% respectively, with changes of +0.14, -0.23, +0.41, and +0.45 percentage points year-on-year [1]. Growth Strategy - The company is focusing on vertical integration and new product development, with plans to produce 61,000 tons of nylon 66 industrial yarn and 199,000 tons of nylon 66 chips in 2024, indicating a strong growth trajectory [1]. Future Projections - Revenue projections for 2024, 2025, and 2026 are 143.29 billion yuan, 157.50 billion yuan, and 176.91 billion yuan respectively, with year-on-year growth rates of 10.91%, 9.92%, and 12.33%. Net profit is expected to rise significantly, with projections of 3.86 billion yuan, 5.37 billion yuan, and 7.59 billion yuan for the same years [5].