Ningbo Solartron Technology (SH:688299) Shanghai Securities·2024-05-31 03:02Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [44]. Core Insights - The company maintains a leading position in the global reflective film market, with a diversified product matrix and steady revenue growth. The reflective film segment achieved revenue of 952 million yuan in 2023, a year-on-year increase of 8.57%, with a sales volume of 144 million square meters, up 17.37% year-on-year [43][32]. Summary by Sections Company Overview - The company focuses on four major application scenarios: new displays, semiconductors, 5G, and new energy vehicles, aiming for significant import substitution in key functional films [39][71]. Reflective Film Segment - The reflective film business is the company's main product, with applications in liquid crystal displays and semiconductor lighting. The average size of LCD TV panels is increasing, which is expected to boost demand for reflective films [10][2.1]. - The company has achieved a reflective rate of over 97% for its products, placing it at an international leading level [24][43]. Optical Base Film and Lithium Battery Separator - The optical base film segment is focused on high-end product import substitution, with a significant market opportunity due to the structural imbalance in China's polyester film industry [3.1][8]. - The lithium battery separator segment is seeing stable growth, with China becoming the world's largest supplier, accounting for over 83% of global shipments in 2023 [7][32]. Financial Performance - In 2023, the company reported total revenue of 1.253 billion yuan, a year-on-year increase of 8.70%, while net profit attributable to shareholders was 95 million yuan, down 15.88% year-on-year [32][44]. - The report forecasts revenue growth for 2024-2026, with expected revenues of 1.592 billion yuan, 2.105 billion yuan, and 2.599 billion yuan, respectively, indicating a compound annual growth rate (CAGR) of 27.00% [44][79]. Research and Development - The company has consistently invested over 4.5% of its revenue in R&D since 2020, focusing on developing new products in high-tech fields [39][71]. - The company has made significant progress in developing transparent polyimide films (CPI), which are crucial for foldable smartphones, with plans for a new production line [74][75].