Sinofibers(SZ:300777) Minsheng Securities·2024-04-23 05:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on expected capacity release and strong customer demand [1][4]. Core Insights - The company reported a revenue of 560 million yuan for 2023, a year-on-year decrease of 29.9%, and a net profit of 290 million yuan, down 51.4% year-on-year. The performance aligns with market expectations, primarily affected by a phase adjustment in customer demand [1][11]. - The company has experienced a continuous decline in revenue and net profit over four consecutive quarters from Q2 2023 to Q1 2024, attributed to adjustments in customer demand and production plans [1][11]. - Significant increases in R&D investment were noted, with R&D expenses rising by 116.1% year-on-year to 621 million yuan in 2023, aimed at meeting new application needs and optimizing technology [1][11]. - The gross margin decreased by 7.9 percentage points to 67.7%, while the net margin fell by 23.0 percentage points to 51.8% in 2023 [1][11]. Financial Performance Summary - For 2023, the company achieved a revenue of 559 million yuan, with a projected revenue growth rate of 22.1% for 2024, and net profit is expected to grow by 22.7% to 355 million yuan [3][12]. - The company’s cash flow from operating activities saw a significant increase of 637.3% year-on-year, amounting to 840 million yuan in 2023 [1][11]. - The company has a large contract progress of 39% for a major contract worth 2.169 billion yuan, with production and delivery affected by customer demand changes in the second half of 2023 [1][11]. Product Performance - In 2023, the carbon fiber segment generated revenue of 460 million yuan, down 26.0% year-on-year, with a production volume of 244.93 tons, a decrease of 21.4% [1][11]. - The carbon fiber fabric segment reported revenue of 100 million yuan, down 39.0% year-on-year, with a gross margin of 69.7% [1][11]. Future Projections - The company is expected to see net profits of 355 million yuan, 428 million yuan, and 513 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 30x, 25x, and 21x [1][12].