Yoke Technology(SZ:002409)2024-05-30 09:00Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" and a market price of RMB 59.83. The sector rating is "Outperform" [1]. Core Views - The report highlights the company's steady growth in performance for 2023 and Q1 2024, with a positive outlook on the expansion of its electronic materials business and the LNG board business entering a harvest period, maintaining the "Buy" rating [1][5]. Financial Performance Summary - In 2023, the company achieved revenue of RMB 4.738 billion, a year-on-year increase of 11.24%, and a net profit attributable to shareholders of RMB 579 million, up 10.53% year-on-year. In Q4 2023, revenue was RMB 1.196 billion, a 9.49% increase year-on-year, while net profit was RMB 99 million, a significant increase of 62.26% year-on-year [5][7][8]. - For Q1 2024, the company reported revenue of RMB 1.618 billion, a 51.09% year-on-year increase, and a net profit of RMB 246 million, up 42.21% year-on-year [5][9]. Business Segment Performance - The electronic materials segment generated revenue of RMB 3.209 billion in 2023, with a gross margin of 33.80%. The semiconductor precursor materials contributed RMB 1.138 billion in revenue, while the photoresist and related reagents generated RMB 1.304 billion [5]. - The LNG insulation materials segment saw revenue of RMB 865 million in 2023, a remarkable increase of 114.49% year-on-year, with production and sales also significantly up [5]. R&D and Production Capacity - The company has increased its R&D investment, with R&D expenses rising to RMB 190 million in 2023, a 48.78% increase year-on-year. The production capacity for semiconductor precursors is steadily ramping up, with successful product testing for major clients [5][11]. Valuation - The report adjusts the earnings forecast for 2024-2026, estimating earnings per share (EPS) of RMB 1.91, RMB 2.65, and RMB 3.54, with corresponding price-to-earnings (PE) ratios of 31.4x, 22.6x, and 16.9x respectively [5][11].