金刚线价格下降影响利润，细线化推动钨丝发展

Investment Rating - The report maintains a "Buy" rating for the company, with a market price of RMB 24.20 and an industry rating of "Outperform the Market" [17]. Core Views - The company reported a revenue of RMB 4.51 billion in 2023, a year-on-year increase of 23.34%, and a net profit of RMB 1.59 billion, up 7.86% year-on-year. However, the Q4 2023 net profit decreased by 55.22% year-on-year [20]. - In Q1 2024, the company experienced a significant decline in performance, with revenue of RMB 856.76 million, down 13.83% year-on-year, and a net profit of RMB 195.48 million, a decrease of 48.46% year-on-year [20]. - The sales volume of diamond wires increased by 33.81% in 2023, contributing to a market share of approximately 40%-50% in Q1 2024, indicating potential for further growth [20]. Summary by Relevant Sections Financial Performance - 2023 Revenue: RMB 4,511.93 million, up 23.34% from 2022 - 2023 Net Profit: RMB 1,588.61 million, up 7.86% from 2022 - Q1 2024 Revenue: RMB 856.76 million, down 13.83% year-on-year - Q1 2024 Net Profit: RMB 195.48 million, down 48.46% year-on-year [3][20]. Market Position - The company achieved a diamond wire sales volume of 12,866 million kilometers in 2023, with a revenue of RMB 4.44 billion, reflecting a year-on-year growth of 22.68% [20]. - The price of diamond wire has been declining due to silicon wafer inventory, with the market price for carbon steel diamond wire dropping to approximately RMB 20 per kilometer [20]. Future Outlook - The company has adjusted its earnings per share forecasts for 2024-2026 to RMB 1.16, RMB 1.86, and RMB 2.49, respectively, reflecting a significant downward revision due to price competition and poor profitability in the downstream silicon wafer industry [20]. - The trend towards finer wire diameters is expected to drive the adoption of tungsten wire, which can withstand higher tensile strength, potentially leading to increased market demand in 2024 [20].