大业股份20240513

Summary of Conference Call for Daye Co., Ltd. Company Overview - Daye Co., Ltd. is a leading company in the rubber metal skeleton materials industry [1] - The company recently released its annual and quarterly reports, which have led to mixed interpretations in the market [1] Financial Performance - The net profit has turned around, indicating a recovery from the difficulties faced since 2022 [1] - The company reported a significant increase in production and sales of various steel wires, with production at 836,300 tons and sales at 829,900 tons, representing growth of 19.6% and 18.5% respectively compared to 2022 [3] Growth Drivers - Continuous expansion of production and sales scale [2] - Increased revenue from overseas markets, which grew from 447.5 million yuan in 2020 to 1.349 billion yuan in 2023, doubling the overseas revenue share from 14.6% to 24.3% [2] - The profit contribution from overseas business increased from 24.8% to 57.9%, indicating high elasticity in performance [3] Challenges and Adjustments - The first quarter revenue showed a decline due to the relocation of the Shentong plant and a price war in the domestic market [4][5] - The company has opted to forgo low-priced orders during the ramp-up of production capacity, which contributed to the revenue decline [5] Cost Optimization and Projects - The company has implemented cost-saving measures, including the installation of biomass boilers that save 15 to 20 million yuan annually [6] - A significant wind power project has received government approval, which is expected to optimize costs in the coming years [6][7] Market Outlook - The company is optimistic about the overseas market, with a reported export revenue share of 28.71% in the first quarter [10] - The overseas revenue from major clients has increased significantly, with over 50% of overseas income coming from the top ten global clients [11] Additional Insights - The company is focusing on green energy through its wind power project, which is expected to reduce costs and enhance sustainability [8][9] - The decline in wind power costs is seen as beneficial for the company's future projects [9]