Red Avenue New Materials(603650) 民生证券·2024-04-25 05:30Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 29.37 yuan [12]. Core Insights - The company achieved significant growth in 2023, with total revenue reaching 2.944 billion yuan, a year-on-year increase of 17.74%, and a net profit attributable to shareholders of 407 million yuan, up 36.37% year-on-year [5][8]. - The semiconductor photoresist business showed resilience, growing by 14.13% despite a global market downturn, driven by strong demand for new products and the continued growth of mature products [5]. - The company has successfully completed the construction of its Shanghai factory, enhancing its cost control capabilities and enabling large-scale production of photoresists [5]. - The recovery in the tire market has positively impacted the specialty rubber additives business, with production reaching 135,000 tons and sales of 141,000 tons, generating revenue of 2.28 billion yuan [5]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 748 million yuan, a year-on-year increase of 14.50%, while net profit decreased by 1.92% year-on-year to 57 million yuan [5]. - The company forecasts net profits of 528 million yuan, 612 million yuan, and 727 million yuan for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 33, 29, and 24 [5][8]. Product Development - New products accounted for 44.12% of total sales in the semiconductor photoresist segment, with significant contributions from KrF and I-line products [5]. - The company is the only mass producer of deep ultraviolet KrF photoresists in China and is expanding its production capacity for biodegradable materials [5]. Market Position - The company holds approximately 22.1% market share in the domestic display panel photoresist market, with a strong focus on developing new materials for electric vehicle tires and domestic automotive applications [5].