Qingdao Gaoce(SH:688556) Southwest Securities·2024-04-25 06:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% in the next six months [10][11]. Core Insights - The company achieved a revenue of 1.42 billion yuan in Q1 2024, representing a year-on-year increase of 12.8%. However, the net profit attributable to the parent company was 210 million yuan, down 36.7% year-on-year, and the net profit after deducting non-recurring gains and losses was 190 million yuan, down 42.7% year-on-year [3][11]. - The comprehensive gross margin for Q1 2024 was 32.4%, a decrease of 2.6 percentage points from the previous quarter, while the net profit margin increased by 0.3 percentage points to 14.9% [3][11]. - The company's slicing capacity is expected to increase to 63 GW in the second half of the year, supporting the annual target of 50 GW for slicing outsourcing [1][11]. Financial Performance Summary - In Q1 2024, the company reported a revenue of 1.42 billion yuan, with a year-on-year growth of 12.8% [3]. - The net profit attributable to the parent company was 210 million yuan, reflecting a year-on-year decline of 36.7% [3]. - The gross margin for Q1 2024 was 32.4%, down from the previous quarter, while the net profit margin was 14.9%, showing a slight improvement [3]. - The company expects to maintain stable revenue from photovoltaic cutting equipment, with a projected revenue of approximately 7 billion yuan in Q1 2024, contributing around 900 million yuan to profits [10][11]. Profit Forecast and Investment Recommendations - The company is expected to maintain its leading position in the photovoltaic cutting equipment sector, with projected net profits of 1.15 billion yuan, 1.45 billion yuan, and 1.82 billion yuan for 2024, 2025, and 2026, respectively [11]. - The report highlights the strong profitability of the company's diamond wire segment, with external sales expected to reach approximately 9 million kilometers in Q1 2024 [23][11].