SPG(SH:600529) Southwest Securities·2024-05-12 07:00Investment Rating - The report suggests maintaining attention on Shandong Pharmaceutical Glass (600529) with a focus on its growth potential and profitability [3][9]. Core Views - The company achieved a total revenue of 4.982 billion yuan in 2023, representing an increase of 18.98%, and a net profit attributable to shareholders of 776 million yuan, up by 25.48% [2][3]. - The first quarter of 2024 saw a revenue of 1.267 billion yuan, a growth of 2.5%, and a net profit of 220 million yuan, reflecting a significant increase of 32.59% [2][3]. - The company plans to distribute a cash dividend of 4.00 yuan per 10 shares, totaling 270 million yuan [2]. Revenue and Profitability - The revenue from the molded bottle series reached 2.264 billion yuan in 2023, growing by 29.36%, while the profit margin improved to 28.03%, an increase of 1.19 percentage points [2][4]. - The company expects the sales of molded bottles to reach 1.4 billion units in 2024, driven by increased demand [9][10]. Cost Management - The report highlights a continuous decline in costs, contributing to an improved profit margin, particularly in high-margin products [2][3]. - The gross margin for the molded bottle series was reported at 39.17%, despite a slight decrease of 0.6 percentage points [2][4]. Employee Incentives and Management Costs - The management expenses increased by 30.44% in 2023, primarily due to the profit-sharing incentive plan [3][9]. - The management expense ratio for Q1 2024 was reported at 4.37%, an increase of 1.32 percentage points [3]. Earnings Forecast - The forecast for net profit attributable to shareholders is projected at 1 billion yuan for 2024, 1.25 billion yuan for 2025, and 1.516 billion yuan for 2026, with corresponding PE ratios of 19, 15, and 12 [3][4][9].