Sunnypol(SZ:002876) Guotou Securities·2024-04-26 00:00Investment Rating - The report maintains a "Buy-A" investment rating for the company, with a target price of 33.05 CNY for 2024, based on a 30x PE ratio [6][12]. Core Views - The company has shown a significant recovery in Q1 2024, achieving a revenue of 542 million CNY, a year-on-year increase of 27.45%, and a net profit of 31 million CNY, up 151.55% year-on-year [9][10]. - The company is expected to see revenue growth from 2.67 billion CNY in 2024 to 4.14 billion CNY by 2026, with net profits projected to rise from 192 million CNY to 353 million CNY in the same period [6][7]. Summary by Sections Sales and Profitability - In 2023, the company sold 25.36 million square meters of polarizers, a year-on-year increase of 10.94%, but faced a decline in average selling price (ASP) to 80.94 CNY per square meter, down 13.89% year-on-year [1]. - The gross margin decreased to 14.81%, a drop of 6.61 percentage points year-on-year, although it showed a trend of quarterly improvement in H2 2023 [1]. Product Development - The company is optimizing its product structure, with new products in various applications, including flexible AMOLED polarizers and ultra-thin PVA polarizers, expected to enter mass production in 2024 [2]. - The company is also expanding into the large-size TV market with a new production line set to launch in 2024, which will enhance its presence in high-margin segments [2]. Financial Performance - The company reported a total revenue of 2.07 billion CNY in 2023, a decrease of 4.87% year-on-year, with a net profit of 43 million CNY, down 79.26% year-on-year [9]. - The financial forecasts indicate a recovery trajectory, with significant growth expected in both revenue and net profit over the next few years [6][7].