KINGLAI MATERIALS(SZ:300260) Soochow Securities·2024-04-28 07:30Investment Rating - The report maintains an "Accumulate" rating for the company, indicating an expected relative price increase of 5% to 15% over the next 6 months [9][8]. Core Insights - The company's performance in 2023 met expectations, with a revenue of 2.711 billion yuan, a year-on-year increase of 3.49%, and a net profit attributable to shareholders of 236 million yuan, a decline of 31.58% year-on-year. The semiconductor sector shows signs of recovery [9][2]. - The semiconductor and food sectors are expected to benefit from domestic demand recovery, with the semiconductor equipment sales showing a year-on-year growth of 8.4% in Q3 2023 and 11.6% in Q4 2023 [2][9]. - The company is focusing on domestic substitution strategies, with significant growth potential in the food packaging market, projected to exceed 25 billion yuan by 2025 [2][9]. Financial Performance Summary - Total revenue for 2023 was 2.711 billion yuan, with a projected increase to 3.305 billion yuan in 2024, reflecting a growth rate of 21.91% [5]. - The net profit attributable to shareholders is forecasted to recover to 365.24 million yuan in 2024, representing a growth of 54.83% year-on-year [5]. - The company's gross profit margin for 2023 was 25.58%, with an expected increase to 27.44% in 2024 [5][2]. - The earnings per share (EPS) is projected to rise from 0.58 yuan in 2023 to 0.90 yuan in 2024 [5]. Sector Analysis - The semiconductor sector is experiencing a recovery, with the company positioned to benefit from increased demand and its status as a primary supplier for leading semiconductor manufacturers [2][9]. - The food sector is also showing growth, with a 21.56% increase in revenue year-on-year, driven by improved margins and a focus on integrated solutions [9][2].