Yangling Metron New Material (SZ:300861) EBSCN·2024-04-29 07:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [3][9]. Core Insights - The company's diamond wire sales have steadily increased, with a production volume growth of 33.07% year-on-year to 148 million kilometers in 2023, and sales volume up 33.81% to 129 million kilometers, leading to a revenue increase of 22.68% to 4.439 billion yuan [8][14]. - However, due to intensified industry competition and declining prices of downstream silicon wafers, the average selling price of diamond wire decreased by 8.33% year-on-year to 34.50 yuan per kilometer, resulting in a reduction of gross margin by 1.77 percentage points to 54.07% [8][9]. - The company plans to produce between 165 million to 180 million kilometers of diamond wire in 2024, maintaining its leading position in the industry despite the pressure on profitability [23]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 4.512 billion yuan, a year-on-year increase of 23.34%, and a net profit of 1.589 billion yuan, up 7.86% year-on-year [14][16]. - For Q1 2024, the company reported a revenue of 857 million yuan, a decrease of 13.83% year-on-year, and a net profit of 195 million yuan, down 48.46% year-on-year [14]. Research and Development - The company has prioritized technology research and development, with R&D investment increasing by 162.21% year-on-year to 119 million yuan in 2023, representing 2.65% of revenue [2][15]. - The dual strategy of developing carbon steel wire and tungsten wire is being implemented, with advancements in both areas expected to enhance competitive positioning [2][15]. Market Outlook - The report anticipates a continued increase in market share for the company, supported by technological upgrades and production expansion, despite the challenges posed by price declines in diamond wire [9][23].