Novoray(SH:688300) ZHONGTAI SECURITIES·2024-05-27 03:00Investment Rating - Buy rating maintained for the company [2] Core Views - The company is expected to accelerate growth in 2024 due to industry demand recovery and its leading position in the global supply chain [7] - The company is focusing on R&D and product upgrades, with plans to invest in advanced functional powder materials and production lines for high-end products [7] - The company has a comprehensive product portfolio, technological advantages, and service capabilities, breaking foreign monopolies and covering almost all core customers [7] Financial Projections and Valuation - Revenue is projected to grow from 712 million in 2023 to 1,513 million in 2026, with a CAGR of 24.5% [3] - Net profit attributable to shareholders is expected to increase from 174 million in 2023 to 463 million in 2026, with a CAGR of 32.0% [3] - EPS is forecasted to rise from 0.94 in 2023 to 2.49 in 2026 [3] - ROE is projected to improve from 13% in 2023 to 20% in 2026 [3] - P/E ratio is expected to decline from 50.2 in 2023 to 18.9 in 2026, indicating potential undervaluation [3] Industry and Market Position - The company has a strong position in the global supply chain, directly competing with Japanese companies [7] - It has achieved batch supply of high-end products such as TOP CUT20um and Lowα spherical alumina in fields like HBM, enhancing its supply priority [7] - The company is expected to benefit significantly from the AI industry trend [7] R&D and Product Development - The company plans to invest 100 million in building an R&D center for IC advanced functional powder materials and 129 million in a production line for ultra-fine spherical powder for advanced integrated circuits [7] - It is focusing on advanced technologies for AI, 5G, HPC, Chiplet, HBM, and other high-end applications [7] - The company is developing low CUT point Lowα spherical silicon powder, spherical alumina powder, and other high-performance materials [7] Financial Performance - In 2023, the company achieved revenue of 712 million, a 7.5% YoY increase, and net profit of 174 million, a 7.6% YoY decrease [6] - In Q1 2024, revenue grew 39.5% YoY to 202 million, and net profit surged 79.9% YoY to 52 million [6] - Gross margin in Q1 2024 was 40.7%, and net margin was 25.5% [13] Valuation and Market Performance - The company's market value is 8,739 million, with a share price of 47.05 as of May 24, 2024 [4] - The stock has shown strong performance compared to the CSI 300 index, with significant growth in 2024 [5]