Xi'an Manareco(SH:688550) KAIYUAN SECURITIES·2024-05-05 04:30Investment Rating - The investment rating for the company is "Buy" (maintained) [13][37]. Core Views - The company faced significant pressure in 2023, with a revenue decline of 18.4% year-on-year, but showed a substantial recovery in Q1 2024, with a revenue increase of 19.8% year-on-year and a net profit increase of 144.2% year-on-year [15][27]. - The OLED materials segment has expanded its market, contributing to improved profitability in Q1 2024, alongside effective cost control measures [15][27]. - The company is expected to continue its capacity expansion and customer acquisition, maintaining a positive outlook for future performance [15]. Financial Summary - In 2023, the company reported a revenue of 1,208 million, down from 1,480 million in 2022, with a projected revenue of 1,556 million for 2024, indicating a recovery trend [4]. - The net profit for 2023 was 134 million, a decrease from 247 million in 2022, with an expected increase to 199 million in 2024 [4]. - The gross margin for 2023 was 35.2%, with an expected recovery to 37.0% in 2024 [4]. - The earnings per share (EPS) for 2023 was 1.00, with projections of 1.48 for 2024 and 1.97 for 2025 [4]. Business Segment Performance - The display materials segment generated revenue of 1,031 million in 2023, down 17.48% year-on-year, while the pharmaceutical intermediates and electronic chemicals segments saw declines of 25.47% and 9.08%, respectively [3]. - The electronic chemicals segment, however, experienced a growth of 35.68% in sales volume, indicating potential for future revenue growth [3]. - The company’s sales gross margin for Q1 2024 was 36.20%, reflecting a year-on-year increase of 3.95 percentage points [3].