Inner Mongolia OJing Science & Technology (001269) 国泰君安·2024-05-10 03:02Investment Rating - Maintains an "Overweight" rating for Oujing Technology (001269) [14] - Target price adjusted to 47.04 CNY, down from the previous forecast of 110.59 CNY [14] Core Views - Oujing Technology reported revenue of 3.129 billion CNY in 2023, with net profit attributable to shareholders of 654 million CNY, aligning with the preliminary forecast [14] - Q1 2024 revenue was 340 million CNY, with net profit of 22 million CNY, below market expectations [14] - The company's profitability is under pressure due to compressed margins in the main industry chain, particularly in the crucible segment [14] - The company's EPS forecasts for 2024-2026 have been revised downward to 1.47, 2.05, and 2.87 CNY, respectively [14] Financial Performance - Revenue growth in 2023 was 118%, with EBIT growth of 172% and net profit growth of 174% [14] - Operating margin in 2023 was 24%, with a return on equity (ROE) of 36.1% and return on invested capital (ROIC) of 28.2% [14] - The company's net debt ratio increased to 95.5% in 2023, up from 76% in 2022 [16] Industry and Market Position - Oujing Technology is a leader in the quartz crucible market, a key component in the solar and semiconductor industries [16] - The company benefits from upstream access to high-quality raw materials and downstream partnerships with major players like Zhonghuan [14] - The crucible segment faces pricing and profitability pressures due to industry-wide margin compression [14] Valuation and Metrics - The company's PE ratio for 2023 was 11.65, with a PB ratio of 5.68 and EV/EBITDA of 12.08 [16] - The dividend yield for 2023 was 3.0% [16] Future Outlook - The company expects limited growth in crucible shipments in 2024 due to weak downstream demand and pricing pressures [14] - The company is undergoing a product structure transformation, with significant asset impairment charges in Q4 2023 and Q1 2024 [14] - The company's long-term outlook remains positive, supported by its leading position in the quartz crucible market and strategic partnerships [14]