FRD(SZ:300602) Haitong Securities·2024-05-30 01:01Investment Rating - The report maintains an "Outperform the Market" rating for the company [7][30]. Core Views - The company achieved a revenue of 4.346 billion yuan in 2023, representing a year-on-year increase of 5.37%, with a net profit attributable to the parent company of 103 million yuan, up 7.31% year-on-year [1]. - The first quarter of 2024 saw a revenue of 982 million yuan, a significant year-on-year increase of 27.05%, and a net profit of 23.64 million yuan, compared to a loss in the same period last year [1]. - The company is expected to see revenues of 5.093 billion yuan, 5.828 billion yuan, and 6.596 billion yuan from 2024 to 2026, with net profits of 282 million yuan, 371 million yuan, and 450 million yuan respectively [30]. Financial Performance Summary - In 2023, the company reported a gross margin of 19.47%, an increase of 2.15 percentage points year-on-year, and a net margin of 2.37%, up 0.04 percentage points year-on-year [1]. - The operating cash flow for 2023 was 5.91 billion yuan, reflecting a dramatic increase of 4952.46% year-on-year [1]. - The company’s revenue breakdown by sector in 2023 showed significant contributions from consumer electronics (38%), communication (27%), and new energy (35%), with notable growth in thermal management materials and devices [9]. Business Segment Analysis - Revenue from electromagnetic shielding materials and devices reached 1.176 billion yuan, with a gross margin of 23.06% [9]. - Thermal management materials and devices generated 1.733 billion yuan in revenue, with a gross margin of 19.90% [9]. - The company anticipates continued growth in these segments, with projected revenues for thermal management materials reaching 2.166 billion yuan in 2024 [11]. Earnings Forecast - The report forecasts earnings per share (EPS) of 0.49 yuan, 0.64 yuan, and 0.78 yuan for 2024, 2025, and 2026 respectively [30]. - The projected net profit growth rates are 173.7% for 2024 and 31.4% for 2025 [24]. Valuation Metrics - The report suggests a dynamic price-to-earnings (PE) ratio range of 38-40X for 2024, indicating a reasonable value range of 18.51-19.48 yuan per share [30].