Sanmei(SH:603379) Ping An Securities·2024-04-30 03:00Investment Rating - The report maintains a "Recommended" investment rating for the company [2][7]. Core Views - In 2023, the company faced significant pressure with a revenue decline of 30.12% year-on-year, totaling 3.334 billion yuan, and a net profit drop of 42.41%, amounting to 280 million yuan. However, in Q1 2024, the company experienced a revenue increase of 23.28% year-on-year, reaching 959 million yuan, and a remarkable net profit surge of 672.53%, totaling 154 million yuan [4][5]. - The company is positioned as a leading supplier in the refrigerant industry, benefiting from a high production quota for HFCs in 2024, which is expected to drive revenue and profit growth as market conditions improve [5][7]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 3.334 billion yuan, down 30.12% year-on-year, and a net profit of 280 million yuan, down 42.41%. The first quarter of 2024 showed a revenue of 959 million yuan, up 23.28% year-on-year, and a net profit of 154 million yuan, up 672.53% [4][5]. - The company’s main product, fluorinated refrigerants, generated revenue of 2.509 billion yuan in 2023, a decrease of 30.95% year-on-year, with production and sales volumes declining by 16.75% and 12.39%, respectively [5]. Market Conditions - The refrigerant market in 2023 was characterized by weak demand and oversupply, leading to price declines. However, in 2024, the introduction of quota systems for HFCs is expected to limit supply and improve pricing as downstream demand recovers [5][7]. - The first quarter of 2024 saw a rebound in the prices of refrigerants, with the company’s revenue from fluorinated refrigerants reaching 769 million yuan, a year-on-year increase of 30.05% [5]. Production Capacity and Quotas - The company has significant production capacity for various refrigerants, including 22.10 million tons of anhydrous hydrogen fluoride and 6.5 million tons of HFC-134a, with corresponding quotas for 2024 that represent a substantial share of the national total [7]. - The report anticipates that the company will achieve net profits of 694 million yuan in 2024 and 783 million yuan in 2025, reflecting a recovery in the refrigerant market [7].