DKEM(SZ:300842) Southwest Securities·2024-05-13 12:30Investment Rating - The report does not explicitly state an investment rating for the company. Core Insights - The company is a leading player in the photovoltaic silver paste market, particularly in the N-type TOPCon battery segment, which has seen significant growth due to technological advancements and increased demand for solar energy solutions [7][50]. - The company's revenue and profit have experienced explosive growth, with a reported revenue of 36.4 billion yuan in Q1 2024, representing a year-on-year increase of 135.4%, and a net profit of 1.8 billion yuan, up 103.7% year-on-year [50][74]. Summary by Sections 1. N-type Battery and Silver Paste Market - The company has established itself as a leader in the N-type TOPCon battery silver paste market, with significant advancements in product development since its founding in 2010 [7][31]. - The company has increased its market share in silver paste for N-type batteries, with a notable rise in sales volume and revenue due to the growing adoption of TOPCon technology [50][72]. 2. Revenue and Profit Growth - In 2023, the company achieved a revenue of 9.6 billion yuan, a year-on-year increase of 154.9%, and a net profit of 390 million yuan, marking a staggering growth of 2336.5% compared to the previous year [50][72]. - The first quarter of 2024 saw the company sell approximately 570 tons of silver paste, a 96.8% increase year-on-year, with TOPCon battery silver paste accounting for over 58% of total sales [50][74]. 3. Market Demand and Projections - The global demand for silver paste is expected to exceed 7,650 tons in 2024, with TOPCon battery silver paste demand projected to reach around 5,300 tons, reflecting a year-on-year growth of 186.3% [42][65]. - The report anticipates that the market share of TOPCon batteries will rise significantly, potentially reaching 70% by 2024, as the technology continues to replace PERC batteries [64][65]. 4. Technological Advancements - The introduction of laser-assisted sintering technology in TOPCon battery production is expected to enhance efficiency and create higher barriers to entry for competitors, thereby increasing the value of silver paste products [44][70]. - The company is focused on continuous innovation in silver paste formulations to meet the evolving needs of battery manufacturers, which is crucial for maintaining competitive advantage [38][70].