CCTC(SZ:300408) Shanxi Securities·2024-04-30 05:30Investment Rating - The report assigns a "Buy-A" rating to the company, indicating a positive outlook for its stock performance [5]. Core Views - The company is recognized as an excellent domestic platform enterprise in electronic ceramics, with a vertically integrated business model that strengthens its competitive edge. The acceleration of domestic substitution in electronic components and the rapid expansion of high-end product capacity are driving growth in the MLCC (Multi-Layer Ceramic Capacitor) business [1][4]. - The company has shown steady improvement in performance, with revenue and net profit experiencing quarter-on-quarter growth, reflecting a recovery in downstream demand [2][3]. Financial Performance - In 2023, the company achieved revenue of 5.727 billion yuan, a year-on-year increase of 11.21%, and a net profit of 1.581 billion yuan, up 5.07% year-on-year. For Q1 2024, revenue reached 1.564 billion yuan, representing a 31.49% year-on-year growth, while net profit increased by 35.31% to 433 million yuan [2][3]. - The gross margin for Q1 2024 was 40.14%, slightly up from the previous quarter, and inventory turnover days decreased to 172.5 days, the lowest since 2021 [3]. Product Development - The company has made significant technological breakthroughs in MLCC products, achieving a dielectric layer thickness of 1 micron and a stacking layer count exceeding 1000 layers. This has led to increased market recognition and a broader application range in downstream sectors [3][4]. Future Projections - The company is expected to see continued growth, with projected net profits of 2.040 billion yuan, 2.593 billion yuan, and 3.200 billion yuan for 2024, 2025, and 2026, respectively. The estimated EPS for the same years is 1.06 yuan, 1.35 yuan, and 1.67 yuan [4][7]. - The report anticipates a P/E ratio of 26.3, 20.7, and 16.8 for the years 2024, 2025, and 2026, indicating a favorable valuation trend [5][10].