SDBH(SH:600966) Huachuang Securities·2024-05-10 10:02Investment Rating - The report maintains a "Recommended" rating for the company [10][27]. Core Views - The company achieved a revenue of 18.693 billion yuan in 2023, with a year-on-year growth of 1.8%. However, the net profit attributable to shareholders decreased by 20.3% to 182 million yuan. In Q1 2024, revenue increased by 5.7% to 4.4 billion yuan, and net profit surged by 120.2% to 100 million yuan [1][27]. - The company is positioned as a leader in the white card paper industry, with expectations for market share growth following new capacity releases. The report anticipates a gradual recovery in profitability and a stable demand for cultural paper [27]. Financial Summary - In 2023, the company reported total revenue of 18.693 billion yuan, with a net profit of 182 million yuan, reflecting a decline of 20.3% year-on-year. The forecast for 2024 estimates revenue growth to 21.35 billion yuan and a significant recovery in net profit to 654 million yuan, representing a growth of 259.8% [17][27]. - The company's gross margin for 2023 was 10.8%, down 0.8 percentage points from the previous year. However, Q1 2024 saw an improvement in gross margin to 13.3% [27]. - The report projects earnings per share (EPS) to increase from 0.14 yuan in 2023 to 0.49 yuan in 2024, with a price-to-earnings (P/E) ratio decreasing from 44 to 12 over the same period [17][27].