Zhuzhou Kibing (SH:601636) Guoxin Securities·2024-05-05 02:00Investment Rating - The report maintains a "Buy" rating for Qibin Group (601636.SH) [1][3][15] Core Views - The company's performance in 2023 met expectations, with a significant year-on-year increase in Q1 2024. Revenue reached 15.68 billion yuan, up 17.8% year-on-year, and net profit attributable to shareholders was 1.75 billion yuan, up 33.0% year-on-year. The basic EPS was 0.66 yuan per share, with a proposed dividend of 3.3 yuan (including tax), resulting in a payout ratio of 50.44% [1][4][15] - The profitability of float glass remains resilient, while photovoltaic glass is experiencing rapid growth. In 2023, revenue from float glass, photovoltaic glass, energy-saving glass, and other functional glass was 9.07 billion, 3.41 billion, 2.78 billion, and 240 million yuan, respectively, with year-on-year growth rates of 4.0%, 114.1%, 8.2%, and -8.1% [1][4][15] - The company is expected to see continued growth in profitability due to the release of photovoltaic glass production capacity and the stability of float glass profitability despite price declines [1][4][15] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 15.68 billion yuan, a 17.8% increase year-on-year, and a net profit of 1.75 billion yuan, a 33.0% increase year-on-year. The basic EPS was 0.66 yuan per share, with a proposed dividend of 3.3 yuan [1][4][16] - Q1 2024 revenue was 3.86 billion yuan, up 23.2% year-on-year, with a net profit of 442 million yuan, up 292.3% year-on-year [1][4][16] Product Segmentation - Revenue from float glass was 9.07 billion yuan, with a sales volume of 11.4 million heavy boxes, a 5.5% increase year-on-year. Photovoltaic glass revenue was 3.41 billion yuan, with a sales volume of 19.4 million square meters, a 202% increase year-on-year [1][4][15] - The company plans to invest in additional production capacity, with 8,200 tons per day currently in production and plans for further expansion [1][4][15] Profitability Metrics - The overall gross margin for 2023 was 25%, an increase of 3.8 percentage points year-on-year. The gross margins for float glass, photovoltaic glass, energy-saving glass, and other functional glass were 27.2%, 21.5%, 20.7%, and 8.9%, respectively [1][4][8] - Operating cash flow for 2023 was 1.54 billion yuan, a 171.9% increase year-on-year, with a debt-to-asset ratio of 53.2% at the end of 2023 [1][4][8]