SPM(SH:600459) Orient Securities·2024-04-30 14:32Investment Rating - The report gives a "Buy" rating for the company, with a target price of 18.26 yuan based on a 22X PE for 2024 [24][26]. Core Insights - The company achieved a revenue of 45.09 billion yuan in 2023, a year-on-year increase of 10.6%, and a net profit attributable to shareholders of 470 million yuan, up 15.1% year-on-year. In Q4 2023, revenue was 10 billion yuan, down 16.5%, with a net profit of 70 million yuan, down 18.2% [23]. - For Q1 2024, the company reported revenue of 10.44 billion yuan, a 3.6% increase year-on-year, and a net profit of 190 million yuan, up 23.5% year-on-year [23]. - The company aims to achieve a revenue target of 50 billion yuan in 2024, representing an 11% growth compared to 2023 [23]. - The company has seen a significant increase in the sales volume of automotive catalytic converters, which reached 7.31 million tons, a 106% year-on-year increase [23]. Financial Performance - The company forecasts revenues of 50.97 billion yuan for 2024, 57.41 billion yuan for 2025, and 65.65 billion yuan for 2026, with respective year-on-year growth rates of 13.1%, 12.6%, and 14.4% [25]. - The net profit attributable to shareholders is projected to be 633 million yuan in 2024, 807 million yuan in 2025, and 935 million yuan in 2026, with year-on-year growth rates of 35.2%, 27.4%, and 15.9% respectively [25]. - The report indicates a weighted ROE of 7.6% for 2023, with a slight recovery to 2.9% in Q1 2024 [23]. Market Position and Strategy - The company is enhancing its capacity for secondary resource recovery, with a project completion in 2023 aimed at establishing a modern industrial base for precious metal recycling [23]. - The company has expanded its market presence in the Beijing-Tianjin-Hebei region and established a green recycling base in Dongying [23]. - The deep processing business has shown significant growth, particularly in special functional materials and precursor materials, which saw sales increases of over 60% [23].