Shandong Sinocera Functional Material (SZ:300285) Guohai Securities·2024-05-02 05:00Investment Rating - The report maintains a "Buy" rating for the company [1][12] Core Views - The company's Q1 2024 net profit increased slightly quarter-on-quarter, indicating overall operational improvement [1][3] - The company focuses on technological innovation in the precision ceramics field, with multiple products being developed [6][12] - The management's confidence is reflected in the stock buyback plan aimed at employee stock ownership [7][12] Financial Performance Summary - In Q1 2024, the company achieved operating revenue of 827 million yuan, a year-on-year increase of 5.23% but a quarter-on-quarter decrease of 22.89% [3][5] - The net profit attributable to shareholders was 133 million yuan, up 7.99% year-on-year and up 3.97% quarter-on-quarter [3][5] - The gross profit margin was 38.82%, an increase of 1.51 percentage points year-on-year but a decrease of 4.40 percentage points quarter-on-quarter [3][5] - The net profit margin was 17.72%, up 0.92 percentage points year-on-year and up 5.09 percentage points quarter-on-quarter [3][5] Future Earnings Forecast - The company is expected to generate revenues of 4.682 billion, 5.694 billion, and 6.694 billion yuan for the years 2024, 2025, and 2026 respectively [12][14] - The net profit attributable to shareholders is projected to be 745 million, 1.010 billion, and 1.268 billion yuan for the same years [12][14] - Corresponding P/E ratios are expected to be 26, 19, and 15 times for 2024, 2025, and 2026 respectively [12][14]