CCTC(SZ:300408) Huachuang Securities·2024-04-29 09:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 31.8 CNY, compared to the current price of 26.09 CNY [2][3]. Core Views - The company's performance exceeded expectations, with a revenue of 5.727 billion CNY in 2023, representing a year-on-year increase of 11.21%. The net profit attributable to shareholders was 1.581 billion CNY, up 5.07% year-on-year [2][3]. - The main product, MLCC, is benefiting from the recovery in downstream consumer electronics and home appliances, indicating a positive growth trajectory for the company's core business [3]. - The company is expected to enter a new growth cycle, driven by its MLCC business, which is projected to lead revenue growth due to improved technology and cost advantages [3]. Financial Summary - In Q4 2023, the company reported a revenue of 1.621 billion CNY, a year-on-year increase of 35.56%, and a net profit of 439 million CNY, up 67.52% year-on-year [2][3]. - For Q1 2024, revenue was 1.564 billion CNY, reflecting a year-on-year increase of 31.49%, while net profit was 433 million CNY, up 35.31% year-on-year [2][3]. - The gross margin improved to 39.96% in Q4 2023 and 40.14% in Q1 2024, indicating effective cost control and product mix optimization [3]. Earnings Forecast - The company is projected to achieve revenues of 7.228 billion CNY in 2024, 8.992 billion CNY in 2025, and 10.417 billion CNY in 2026, with respective year-on-year growth rates of 26.2%, 24.4%, and 15.8% [4]. - The net profit attributable to shareholders is expected to reach 2.027 billion CNY in 2024, 2.475 billion CNY in 2025, and 2.846 billion CNY in 2026, with growth rates of 28.2%, 22.1%, and 15.0% respectively [4].