Longhua Technology(SZ:300263) Guolian Securities·2024-04-26 14:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.54 CNY, based on a 30x PE for 2024 [6]. Core Insights - The company achieved a revenue of 2.467 billion CNY in 2023, representing a year-on-year growth of 7.22%. The net profit attributable to shareholders was 127 million CNY, a significant increase of 97.15% year-on-year [1]. - The energy-saving and environmental protection business segment showed improved profitability with a gross margin of 24.00%, up 2.93 percentage points year-on-year, contributing to the overall enhancement of the company's profitability [2]. - The electronic materials segment, primarily focused on sputtering targets, faced short-term pressure but is expected to benefit from long-term demand growth due to domestic supply chain advancements and new technology iterations in the photovoltaic sector [2]. Financial Performance Summary - In Q1 2024, the company reported a revenue of 642 million CNY, with a year-on-year growth of 7.50% and a quarter-on-quarter growth of 11.87%. However, the net profit attributable to shareholders decreased by 30.87% year-on-year [1]. - The company forecasts revenues of 3.067 billion CNY, 3.879 billion CNY, and 4.853 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 24.32%, 26.48%, and 25.09% [3]. - The projected net profit attributable to shareholders for 2024, 2025, and 2026 is 227 million CNY, 337 million CNY, and 437 million CNY, with growth rates of 79.24%, 48.13%, and 29.84% respectively [3]. Business Segment Analysis - The energy-saving and environmental protection segment generated 1.676 billion CNY in revenue in 2023, up 8.94% year-on-year, with a gross margin improvement contributing to the overall profitability [2]. - The high polymer composite materials segment maintains a leading position in technology and is actively expanding into overseas markets, which is expected to enhance market share [2]. - The electronic materials segment reported a revenue of 473 million CNY in 2023, a slight decline of 0.38% year-on-year, with a gross margin of 19.37%, down 2.21 percentage points [2].