2023年盈利能力逆势提升

Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1]. Core Views - The report highlights that despite a 15.26% decline in total revenue to RMB 4.305 billion in 2023, the company's net profit attributable to shareholders increased by 5.78% to RMB 763 million. The company plans to distribute a cash dividend of RMB 3 per 10 shares (including tax) [3][4]. - The report maintains a "Buy" rating, driven by the anticipated growth from the production of various new materials [3]. Financial Performance Summary - 2023 Financials: - Total revenue decreased by 15.26% to RMB 4.305 billion. - Net profit attributable to shareholders increased by 5.78% to RMB 763 million. - The company’s gross margin improved by 2.75 percentage points to 42.49% [3][4]. - Q4 2023 Performance: - Revenue for Q4 was RMB 1.130 billion, down 8.64% year-on-year but up 2.51% quarter-on-quarter. - The gross margin for Q4 was 41.57%, an increase of 0.94 percentage points year-on-year [4][22]. - Q1 2024 Performance: - Revenue for Q1 2024 was RMB 938 million, a decline of 9.19% year-on-year. - Net profit for Q1 2024 was RMB 98 million, down 44.32% year-on-year [3][22]. Business Segment Analysis - Functional Materials: - Revenue from functional materials increased by 12.25% to RMB 3.366 billion in 2023, with a gross margin of 43.91% [3]. - Life Sciences and Pharmaceuticals: - Revenue decreased by 56.67% to RMB 882 million, with a gross margin of 36.22% [3]. Future Outlook - The company is optimistic about the growth potential from new materials and projects, particularly in the OLED materials sector, where production capacity is expected to expand significantly [3][4]. - The company has initiated several projects, including a new technology research center and production base for OLED materials, with significant investments planned [3]. Valuation - The report adjusts the earnings forecast for 2024-2026, projecting EPS of RMB 0.83, RMB 0.97, and RMB 1.14 for the respective years, with corresponding P/E ratios of 14.1x, 12.0x, and 10.2x [3][6].