DKEM(SZ:300842)2024-06-04 09:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price increased to RMB 72.80 from RMB 70.84, reflecting a 2.8% adjustment [12][34]. Core Insights - The company is experiencing rapid growth in N-type silver paste shipments, with Q1 2024 showing a shipment volume of 569.94 tons, a year-on-year increase of 96.9% [17][33]. - The adoption of LECO technology is becoming standard in the industry, enhancing barriers and technological thresholds, positioning the company to benefit from industry dividends [40][34]. - The company anticipates a significant increase in photovoltaic silver paste shipments, projecting a volume of 2,500-3,000 tons for 2024, representing over 46% year-on-year growth [17][39]. Financial Performance - For Q1 2024, the company reported revenue of RMB 3.644 billion, a year-on-year increase of 135.38%, and a net profit attributable to the parent company of RMB 176 million, reflecting a year-on-year growth of 103.71% [39][33]. - The gross margin for Q1 2024 was approximately 10.65%, slightly decreasing due to rising silver paste prices [17][33]. - The company’s R&D expenses reached RMB 110 million in Q1 2024, marking a year-on-year growth of 201% [40][34]. Future Projections - Revenue forecasts for 2024-2026 are estimated at RMB 13.975 billion, RMB 15.764 billion, and RMB 17.977 billion, respectively, with net profits projected to be RMB 640 million, RMB 784 million, and RMB 910 million [34][41]. - The company is actively advancing the construction of a silver nitrate project, expected to be operational by the end of 2024, which will enhance supply chain stability and reduce raw material costs [18][34].