KCT(SZ:002625) INDUSTRIAL SECURITIES·2024-05-10 03:02Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of this rating [5]. Core Insights - In 2023, the company achieved operating revenue of 1,494 million yuan, a year-on-year increase of 28.0%, and a net profit attributable to shareholders of 583 million yuan, up 54.9% year-on-year [6][8]. - The company's supermaterial products saw significant revenue growth, generating 1,247 million yuan in 2023, a 55.94% increase year-on-year, accounting for 83.47% of total revenue [6][8]. - The company is expanding its automotive electromagnetic testing business and has secured substantial contracts for supermaterial structural components [6][8]. Financial Performance Summary - 2023 Financials: - Operating revenue: 1,494 million yuan, up 28.0% year-on-year - Net profit: 583 million yuan, up 54.9% year-on-year - Basic earnings per share: 0.27 yuan, up 58.82% year-on-year [6][8]. - 2024 Q1 Performance: - Operating revenue: 321 million yuan, up 3.04% year-on-year, and up 18.89% quarter-on-quarter - Net profit: 136 million yuan, up 34.88% year-on-year [6][8]. - Future Projections: - Expected net profits for 2024, 2025, and 2026 are 765 million yuan, 1,137 million yuan, and 1,342 million yuan respectively, with corresponding EPS of 0.36 yuan, 0.53 yuan, and 0.62 yuan [6][8]. Product Segment Performance - Supermaterial Products: - Revenue: 1,247 million yuan, 55.94% increase year-on-year, with a gross margin of 52.19% [6][8]. - Automotive Parts: - Revenue: 206 million yuan, down 24.56% year-on-year, with a gross margin of 9.35% [6][8]. - Research and Development: - Revenue from supermaterial R&D: 27.92 million yuan, down 61.88% year-on-year, with a gross margin of 32.64% [6][8]. Cash Flow and Balance Sheet - The company reported a negative net cash flow from operating activities of -16 million yuan in 2023, a decrease of 111.27% year-on-year [6][8]. - As of the end of 2023, accounts receivable totaled 1,664 million yuan, a 49.79% increase from the beginning of the year [6][8]. Strategic Developments - The company has established a joint innovation laboratory for automotive electromagnetic modulation technology, indicating a strategic move into the automotive testing sector [6][8]. - A significant contract worth 660 million yuan for supermaterial structural components was signed in March 2024, reflecting strong demand in this segment [6][8].