Zhuzhou Kibing (SH:601636) Guotai Junan Securities·2024-04-26 09:02Investment Rating - The report maintains a "Buy" rating for Qibin Group (601636) [1][2] - Previous rating was also "Buy" [1] Core Views - The report highlights that the float glass business continues to maintain high profitability, and the scale effect of photovoltaic glass is becoming evident, leading to simultaneous growth in volume and profit [1][2] - The target price has been adjusted to 10.06 yuan from the previous forecast of 12.32 yuan [1][2] Financial Performance Summary - In 2023, the company achieved a revenue of 15.683 billion yuan, representing an 18% year-on-year increase, and a net profit of 1.75 billion yuan, up 33% year-on-year [1][2] - For Q1 2024, the company reported a revenue of 3.85 billion yuan, a 23% increase year-on-year, and a net profit of 442 million yuan, a significant increase of 292% year-on-year [1][2] - The company has adjusted its EPS forecast for 2024-2025 to 0.75 yuan and 0.90 yuan respectively, with a 2026 EPS forecast of 1.05 yuan [1][2] Market and Operational Insights - The float glass sales volume reached 114 million boxes in 2023, a 5.5% increase year-on-year, with a production and sales rate above 100% [1][2] - The report notes that the profitability of float glass is expected to remain stable despite a slight decline in prices, supported by lower soda ash prices [1][2] - The photovoltaic glass segment saw a sales volume of 1.9 billion square meters in 2023, with a gross margin of 21.55% [1][2] Valuation Metrics - The company is currently trading at a PE ratio of 11.37 for 2023E and 9.85 for 2024E, which is lower than the average of comparable companies [1][2][6] - The report indicates that the company's net asset return rate is projected to be 12.9% in 2023, with a gross margin of 25% [2][6]