SPG(600529) Dongxing Securities·2024-04-26 09:00Investment Rating - The report maintains a "Strong Buy" rating for Shandong Pharmaceutical Glass [4][8]. Core Views - The company's product structure optimization is driving high profit growth, with a significant increase in sales of borosilicate molded bottles, which are the mainstay products [3][4]. - The company achieved a revenue of 4.982 billion yuan in 2023, representing an 18.98% year-on-year growth, and a net profit of 775.8 million yuan, up 25.48% year-on-year [2][9]. - The first quarter of 2024 saw a revenue of 1.267 billion yuan, a 2.50% increase year-on-year, and a net profit of 210 million yuan, reflecting a 36.14% growth [2][3]. Financial Performance Summary - Revenue and Profit Growth: - 2023 revenue: 4.982 billion yuan, 18.98% growth - 2023 net profit: 775.8 million yuan, 25.48% growth - 2024 estimated revenue: 5.784 billion yuan, 16.10% growth - 2024 estimated net profit: 1.02068 billion yuan, 31.56% growth [9][11]. - Earnings Per Share (EPS) Forecast: - 2023 EPS: 1.17 yuan - 2024 estimated EPS: 1.54 yuan - 2025 estimated EPS: 1.89 yuan - 2026 estimated EPS: 2.34 yuan [4][9]. - Price-to-Earnings (PE) Ratio: - 2024 PE: 18.52 - 2025 PE: 15.03 - 2026 PE: 12.16 [4][9]. Market Position and Competitive Advantage - The company is a leading player in the borosilicate molded bottle market, benefiting from scale advantages and ongoing product development [3][4]. - The introduction of new products and automation in production processes are expected to further reduce costs and enhance customer loyalty [3][4]. - The company has developed 591 new products in 2023, a 170% increase from the previous year, which includes lightweight molded bottles that lower production costs [3][4].