TORCH ELECTRON(SH:603678) Tianfeng Securities·2024-05-09 07:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [13]. Core Insights - The company reported a revenue of 3.50 billion yuan in 2023, a decrease of 1.55% year-on-year, primarily due to the slow recovery of customer demand in the components industry [1]. - The net profit attributable to the parent company was 318 million yuan, down 60.27% year-on-year, largely due to price adjustments aimed at increasing customer stickiness [1]. - The new materials business segment achieved a revenue of 160 million yuan in 2023, reflecting a robust growth of 58.51% year-on-year, indicating strong potential in this area [1]. - The company is expected to benefit from the increasing application of ceramic materials in next-generation equipment, with a broad market space ahead [31]. Financial Summary - Revenue projections for 2024 and 2025 are 4.35 billion yuan and 5.43 billion yuan, respectively, with expected growth rates of 24.10% and 24.80% [2]. - The net profit forecast for 2024 and 2025 is adjusted to 385 million yuan and 551 million yuan, respectively, with corresponding P/E ratios of 29.79 and 20.80 [32]. - The company’s EBITDA for 2023 was 845 million yuan, a significant decline from 1.26 billion yuan in 2022 [2]. Business Outlook - The company’s self-produced components business faced short-term pressure, but a diversified product layout is expected to become a new growth point for performance [6]. - The new materials business is anticipated to maintain high-speed growth, driven by increasing demand in aerospace and defense sectors [28]. - The company is focusing on enhancing its product mix and management strategies to adapt to market changes and improve profitability [32].