Wuzhou Special Paper(SH:605007) Huachuang Securities·2024-05-20 05:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 19.1 CNY per share, compared to the current price of 15.79 CNY [17][27]. Core Insights - The company achieved a revenue of 6.52 billion CNY in 2023, representing a year-on-year growth of 9.3%. The net profit attributable to shareholders was 273 million CNY, up 33.0% year-on-year [27]. - For Q1 2024, the company reported a revenue of 1.73 billion CNY, a significant increase of 37.2% year-on-year, and a net profit of 130 million CNY, marking a turnaround from losses [27]. - The company is expanding its production capacity, with new facilities expected to enhance its product matrix and support long-term growth [17][18]. Financial Performance Summary - Revenue Forecast: Projected revenues are expected to grow from 6.52 billion CNY in 2023 to 9.83 billion CNY by 2026, with annual growth rates of 9.3%, 16.6%, 13.9%, and 13.5% respectively [2][29]. - Net Profit Forecast: The net profit is anticipated to rise from 273 million CNY in 2023 to 807 million CNY in 2026, with growth rates of 33.0%, 98.0%, 29.5%, and 15.4% respectively [2][29]. - Earnings Per Share (EPS): EPS is projected to increase from 0.68 CNY in 2023 to 2.00 CNY in 2026 [2][29]. - Valuation Ratios: The price-to-earnings (P/E) ratio is expected to decrease from 23 in 2023 to 8 by 2026, while the price-to-book (P/B) ratio is projected to decline from 2.6 to 1.4 over the same period [2][29]. Company Overview - The company has a total share capital of approximately 40.39 million shares, with a market capitalization of 6.378 billion CNY [4]. - The company has successfully completed its equity incentive targets, indicating strong management performance and alignment with shareholder interests [27].