SPG(SH:600529) EBSCN·2024-05-09 08:32Investment Rating - The report maintains a "Buy" rating for Shandong Pharmaceutical Glass [2][3] Core Views - The demand for borosilicate glass is high, leading to continuous performance improvement for Shandong Pharmaceutical Glass, with 2023 revenue and net profit increasing by 19.0% and 25.5% year-on-year, respectively [2] - The company has seen significant cash flow growth, with operating cash flow increasing by 315.0% year-on-year in 2023 [2] - The gross margin improved to 28.0% in 2023, with a notable increase to 30.6% in Q1 2024, attributed to falling raw material prices and a higher proportion of high-margin products [2] - The company is expanding its production capacity for borosilicate molded bottles, with a new furnace expected to support continued sales growth [2] Summary by Sections Financial Performance - In 2023, Shandong Pharmaceutical Glass achieved revenue of 4.98 billion yuan, net profit of 776 million yuan, and a net profit margin of 15.6% [2][3] - For Q1 2024, the company reported revenue of 1.27 billion yuan and a net profit of 220 million yuan, reflecting year-on-year growth of 2.5% and 32.6%, respectively [2] Product Segments - Revenue from molded bottles grew by 29.4% year-on-year, with significant contributions from both domestic and international markets [2] - The company successfully developed 591 new products in 2023, marking a 70% increase in new product development [2] Profitability and Valuation - The report projects net profit for 2024 and 2025 to be 1.03 billion yuan and 1.17 billion yuan, respectively, with an upward revision of 11% and 5% [2][3] - The estimated P/E ratio is expected to decrease from 24 in 2023 to 18 in 2024, indicating improved valuation attractiveness [3]