AKL(SH:603722) EBSCN·2024-04-29 03:32Investment Rating - The report maintains an "Accumulate" rating for the company [3][22]. Core Views - The company, Akole (603722.SH), is a leading player in the domestic polyether amine industry and is expanding into COC/COP materials, which are expected to broaden its growth prospects [3][22]. - The company's financial performance has been under pressure due to declining prices of its main products, including fatty amines and optical materials, resulting in a significant drop in revenue and net profit [22]. - The company is actively working on a new high-end optical materials project, with a planned investment of 1.05 billion yuan, which is expected to enhance its product offerings and market reach [22]. Financial Performance - In Q1 2024, the company reported revenue of 103 million yuan, a year-on-year decrease of 28.13% and a quarter-on-quarter decrease of 16.32%. The net profit attributable to the parent company was 1.19 million yuan, down 81.01% year-on-year and 52.56% quarter-on-quarter [3][22]. - For the full year 2023, the company achieved revenue of 537 million yuan, a decrease of 24.73% year-on-year, and a net profit of 23.92 million yuan, down 80.10% year-on-year [13][22]. - The company's gross margin has declined significantly due to falling prices, with the average selling price of polyether amines and optical materials dropping by 37.8% and 33.7%, respectively [22]. Future Outlook - The company is expected to see improvements in profitability as the polyether amine segment recovers and the COC/COP products ramp up production. The projected net profits for 2024, 2025, and 2026 are 49 million yuan, 83 million yuan, and 136 million yuan, respectively [22]. - The company is focusing on expanding its market presence by developing differentiated marketing strategies and collaborating with downstream clients in various sectors, including optical lenses and high-end medical packaging [22].