SUN PAPER(SZ:002078) Guolian Securities·2024-05-10 14:30Investment Rating - The report maintains a "Buy" rating for the company [5][7]. Core Insights - The company reported a strong Q1 performance with revenue of 10.185 billion, a year-on-year increase of 3.87%, and a net profit attributable to shareholders of 956 million, up 69.04% year-on-year [1]. - The company is experiencing steady revenue growth, particularly in cultural paper and corrugated box paper segments, supported by price increases and strong demand [2]. - The company's profitability is impressive, with a gross margin of 17.99%, an increase of 4.48 percentage points year-on-year, driven by favorable pricing and cost control measures [3]. - The company is expanding its production capacity with significant investments planned for new projects, which will enhance its long-term growth prospects [4]. Financial Performance Summary - For Q1 2024, the company achieved a gross profit margin of 17.99%, up from 13.51% in Q1 2023, reflecting improved operational efficiency [15]. - The company expects revenue growth rates of 15.06%, 8.41%, and 6.30% for 2024, 2025, and 2026, respectively, with net profit growth rates of 23.05%, 12.04%, and 9.01% for the same years [5][6]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.36, 1.52, and 1.66 yuan, respectively, indicating a compound annual growth rate (CAGR) of 14.55% over three years [5][6].