Levima Advanced Materials Corporation(SZ:003022) SINOLINK SECURITIES·2024-04-28 02:30Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's profitability has significantly improved, with a recovery in EVA profitability driven by self-supply of raw materials and price increases [3] - The company is actively advancing its new materials platform, with several new projects expected to contribute to sustained growth [3] - The forecast for 2024-2026 earnings has been adjusted, reflecting a growth outlook supported by the new materials platform [3] Summary by Sections Performance Overview - In Q1 2024, the company achieved revenue of 1.48 billion yuan, a year-on-year decrease of 6% and a quarter-on-quarter decrease of 19% [2] - The net profit attributable to shareholders was 51.44 million yuan, down 65% year-on-year but up 23% quarter-on-quarter [2] Operational Analysis - Maintenance activities impacted performance, with certain production units undergoing repairs, affecting output [2] - The company has resumed normal production after the maintenance period [2] Profitability Improvement - The gross margin for Q1 improved significantly, recovering 3.7 percentage points to 16.29% compared to Q4 2023, primarily driven by high-margin EVA products [3] - The price of photovoltaic EVA rebounded from 11,500 yuan to 13,500 yuan per ton, supporting profitability [3] New Projects and Growth Prospects - The company is progressing with its new materials platform, with several projects expected to come online in 2024, including high-margin products [3] - The company anticipates a 30% growth in photovoltaic component demand in 2024, which will drive EVA demand [3] Earnings Forecast and Valuation - The earnings forecast for 2024-2026 has been adjusted to 480 million yuan (-13%), 590 million yuan (-13%), and 1.01 billion yuan, respectively [3]