HIUV(SH:688680) Changjiang Securities·2024-05-15 09:32Investment Rating - The investment rating for the company is "Buy" and is maintained [26][30]. Core Insights - The company reported a revenue of 4.872 billion yuan in 2023, a decrease of 8% year-on-year, with a net profit attributable to the parent company of -229 million yuan, a decline of 556% year-on-year [5][30]. - In Q4 2023, the company achieved a revenue of 923 million yuan, down 21% year-on-year and 40% quarter-on-quarter, with a net profit of -153 million yuan, a decrease of 84% year-on-year and 272% quarter-on-quarter [5][30]. - For Q1 2024, the company reported a revenue of 877 million yuan, a decline of 35% year-on-year and 5% quarter-on-quarter, with a net profit of -19 million yuan, a decrease of 183% year-on-year [5][30]. - The company sold 560 million square meters of film in 2023, an increase of 29% year-on-year, but is expected to incur losses on a per square meter basis [5][30]. - The company is facing pressure on its performance primarily due to the deteriorating competitive landscape in the film segment, prompting strategic adjustments including lean production and new product launches [5][30]. Financial Summary - The company’s total revenue for 2024 is projected to be 5.011 billion yuan, with a net profit of 68 million yuan, corresponding to a PE ratio of 47 times [30][33]. - The gross margin for Q1 2024 is expected to be 3.8%, reflecting a quarter-on-quarter increase of 7.4 percentage points, indicating a potential recovery in profitability [8][30]. - The company’s inventory at the end of Q1 2024 was 640 million yuan, a decrease of 12.5% quarter-on-quarter, and accounts receivable and notes receivable were 2.19 billion yuan, down 6.5% quarter-on-quarter, suggesting improved turnover and reduced working capital usage [8][30].