Silan(SH:600460) ZHONGTAI SECURITIES·2024-05-06 03:26Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% in the next 6 to 12 months [12]. Core Views - The company is experiencing a recovery in downstream demand, leading to improved profitability and continuous upgrades in product structure [2][4]. - The first quarter of 2024 showed a revenue of 2.465 billion yuan, a year-on-year increase of 19%, although the net profit was negative due to fair value changes in financial assets [3][4]. - The company is positioned as an IDM (Integrated Device Manufacturer), which is expected to enhance profitability as capacity utilization improves [8]. Financial Performance Summary - Revenue Forecast: - 2022A: 8,282 million yuan - 2023A: 9,340 million yuan (15% growth) - 2024E: 11,185 million yuan (20% growth) - 2025E: 13,159 million yuan (18% growth) - 2026E: 14,083 million yuan (7% growth) [1] - Net Profit Forecast: - 2022A: 1,052 million yuan - 2023A: -36 million yuan - 2024E: 311 million yuan (968% growth) - 2025E: 519 million yuan (67% growth) - 2026E: 690 million yuan (33% growth) [1] - Earnings Per Share (EPS): - 2022A: 0.63 yuan - 2023A: -0.02 yuan - 2024E: 0.19 yuan - 2025E: 0.31 yuan - 2026E: 0.41 yuan [1] - Valuation Ratios: - P/E ratio for 2024E: 46.2 - P/B ratio for 2024E: 2.7 [1] Market Position and Product Development - The company has seen significant growth in the shipment of products such as IGBT devices and power modules, particularly in high-end markets [4][5]. - The company is expanding its production capabilities, including investments in 12-inch wafer production and SiC MOS chip production, which are expected to enhance its competitive edge [6][8]. Investment Outlook - The company is projected to achieve net profits of 310 million yuan, 520 million yuan, and 690 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 103, 62, and 46 [8]. - The continuous increase in shipments in high-barrier markets such as automotive and renewable energy is expected to drive future growth [8].