Zhuzhou Kibing (SH:601636) Huachuang Securities·2024-04-29 01:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][15]. Core Views - The company's dual main businesses of float glass and photovoltaic glass have entered a stable phase, with Q1 performance showing year-on-year improvement [1]. - The 2023 revenue reached 15.683 billion, a year-on-year increase of 17.80%, while the net profit attributable to shareholders was 1.751 billion, up 32.98% year-on-year [1]. - In Q1 2024, the company achieved revenue of 3.857 billion, a year-on-year increase of 23.20%, and a net profit of 442 million, reflecting a significant year-on-year growth of 292.30% [1]. Financial Performance Summary - 2023 Financials: - Total revenue: 15.683 billion, up 17.80% year-on-year - Net profit: 1.751 billion, up 32.98% year-on-year - Float glass sales volume: 11.4 million heavy boxes, up 599 thousand heavy boxes year-on-year - Photovoltaic glass sales volume: 19.4 million square meters, up 201.7% year-on-year [1][2]. - Q1 2024 Financials: - Revenue: 3.857 billion, up 23.20% year-on-year - Net profit: 442 million, up 292.30% year-on-year - Sales gross margin: 26.1%, up 12.7 percentage points year-on-year [1][2]. Business Segment Performance - Float Glass: - Revenue: 9.07 billion, up 4.0% year-on-year - Gross margin: 27.2%, up 4.2 percentage points year-on-year [1]. - Photovoltaic Glass: - Revenue: 3.41 billion, up 114.1% year-on-year - Gross margin: 21.6%, up 13.5 percentage points year-on-year - Despite a decrease in price per square meter by 7.2 yuan to 17.6 yuan, the company achieved a gross profit increase of 1.8 yuan per square meter [1]. Capacity Expansion and Future Outlook - The company has established a photovoltaic glass production capacity of 8,200 tons/day, ranking among the top three in the industry. An additional 3 production lines (totaling 3,600 tons/day) are expected to be operational in 2024, increasing total capacity to 11,800 tons/day [1]. - The company is also expanding into electronic glass and pharmaceutical glass, with ongoing projects to enhance production capabilities [1]. Valuation and Price Target - The report adjusts the EPS forecast for 2024-2025 to 0.72/0.87 yuan per share, with a new 2026 EPS forecast of 0.97 yuan per share. The target price is set at 8.64 yuan, based on a 12x PE for 2024 [1][2].