Kaili Catalyst & New Materials (SH:688269)2024-05-24 01:32Investment Rating - The report maintains an "Outperform" rating for the company [3] Core Views - The company reported a revenue of 1.785 billion yuan in 2023, a year-on-year decrease of 5.15%, and a net profit of 113 million yuan, down 48.95% year-on-year. The first quarter of 2024 saw a revenue of 305 million yuan, a decline of 38.25% year-on-year, and a net profit of 11 million yuan, down 72.14% year-on-year [3] - The decline in performance is attributed to a significant drop in palladium and rhodium prices, which fell by 33.8% and 56.19% respectively in 2023, leading to a 46.5% decrease in the book value of turnover materials [3] - Despite the current challenges, the company is expected to leverage its strong R&D capabilities to support future growth, with new products anticipated to launch in the second half of 2024 [3] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 1.785 billion yuan, with a net profit of 113 million yuan. The first quarter of 2024 showed a revenue of 305 million yuan and a net profit of 11 million yuan, indicating a significant decline in profitability [3][11] - The company's gross margin for 2024 Q1 was reported at 10.6%, down from 12.0% in 2023 [11] Market Position and Strategy - The company maintains a strong market position with a production and sales volume of 17.76 tons and 11.83 tons for homogeneous catalysts, reflecting increases of 126.37% and 73.61% year-on-year respectively [3] - The company plans to expand its product offerings in various sectors, including fine chemicals, basic chemicals, and environmental protection, with a focus on new catalyst products [3] Earnings Forecast - The earnings forecast for 2024 and 2025 has been adjusted downwards, with expected net profits of 164 million yuan and 208 million yuan respectively. A new forecast for 2026 predicts a net profit of 267 million yuan [3][12] - The current price-to-earnings (PE) ratio is projected to be 22X for 2024, 17X for 2025, and 13X for 2026, indicating a potential for future growth [3][11]