Zhejiang Jiemei Electronic And Technology (SZ:002859) Xiangcai Securities·2024-04-23 12:02Investment Rating - The investment rating for the company is upgraded to "Accumulate" from "Buy" [15][25]. Core Insights - In 2023, the company achieved a revenue of 1.572 billion yuan, representing a year-on-year growth of 20.83%, and a net profit attributable to the parent company of 256 million yuan, up 54.11% year-on-year. The gross margin improved to 35.82%, an increase of 6.37 percentage points from the previous period [5][31]. - The fourth quarter saw a significant revenue increase of 44.37% year-on-year, with a net profit growth of 416.85%, marking the highest quarterly growth since the company went public, indicating a clear recovery in the paper carrier tape business [5][31]. - The company is successfully advancing the verification of MLCC release films, which are expected to gradually ramp up in production [6][27]. Financial Performance Summary - The company reported a gross margin of 35.82% for 2023, compared to 29.45% in the previous year, reflecting a strong improvement in profitability [5]. - The revenue forecast for 2024, 2025, and 2026 has been adjusted to 353 million, 395 million, and 465 million yuan respectively, down from previous estimates due to lower-than-expected smartphone demand [25]. - The company's paper carrier tape business utilization rate has shown significant improvement, with expectations of reaching around 80% in the second quarter of 2024 [16][25]. Business Development - The company is expanding its production capacity for optical-grade BOPET films and has made progress in the verification of MLCC release films with major clients in Japan and South Korea [27]. - The second phase of the BOPET film project is set to double the production capacity, with installation expected to be completed by the end of 2024 [27]. - The company is also enhancing its production environment and technology to reduce manufacturing costs and improve efficiency [33].