SENXUAN(BJ:830946) KAIYUAN SECURITIES·2024-04-30 10:30Investment Rating - The investment rating for the company is "Buy" (maintained) as of April 30, 2024 [40]. Core Insights - The company has integrated its supply chain through significant asset restructuring and joint investments, ensuring raw material supply and enhancing product structure by phasing out low-value products [1]. - Despite facing challenges such as price declines in chemical products and trade conflicts, the company has a stable financial outlook with a projected recovery in revenue and profit in the coming years [5][42]. - The raw material drug segment contributes significantly to revenue, accounting for approximately 57.66% in 2023, while the company is also focusing on expanding its product matrix in niche specialty raw materials [33][42]. Financial Performance - In 2023, the company achieved a revenue of 590 million yuan, a decrease of 5.46% year-on-year [5]. - The net profit attributable to shareholders for 2023 is projected at 135 million yuan, reflecting a decline of 16.2% compared to the previous year [39]. - The gross margin for 2023 is reported at 43%, with a net margin of 22.8% [39]. Market Position and Industry Outlook - The raw material drug industry is characterized by high barriers to entry and significant profit margins, with the market expected to grow substantially due to factors such as aging population and patent expirations [25][46]. - The company is well-positioned in the market, being one of the largest domestic suppliers of specific chemical intermediates, and is expected to benefit from the growing demand in the electric vehicle sector [42][70]. - The company has a strong R&D capability with 125 patents, which supports its competitive edge in the market [46]. Product Segmentation - The company's product offerings include chemical raw materials, pharmaceutical intermediates, and oxygen-containing cyclic compounds, with raw materials contributing over 50% of total revenue [35][55]. - In 2023, the revenue from the oxygen-containing cyclic products segment decreased by 16.31% due to increased competition and declining demand in the antiviral drug market [71].