XINYI GLASS(00868) 国泰君安·2024-02-29 16:00Investment Rating - Maintains an "Overweight" rating for the company [1][3] Core Views - The company achieved a net profit attributable to shareholders of HKD 5.37 billion in 2023, meeting expectations [1] - Revenue for 2023 was HKD 26.8 billion, a year-on-year increase of 4.1%, with net profit attributable to shareholders increasing by 4.6% year-on-year [1] - Forecasts net profit attributable to shareholders for 2024-2026 to be HKD 6.3 billion, HKD 6.8 billion, and HKD 7.2 billion respectively [1] - The target price is set at HKD 10.45, with a 2024 PE ratio of 7x based on comparable company valuations [1] Financial Performance - Float glass revenue in 2023 was HKD 17.5 billion, a year-on-year increase of 5.3%, with gross profit of HKD 4.6 billion and a gross margin of 26.5% [1] - Automotive glass revenue in 2023 was HKD 5.98 billion, a year-on-year decrease of 1.6%, with a gross margin of 47.9%, down 2.4 percentage points year-on-year [1] - Architectural glass revenue in 2023 was HKD 3.35 billion, a year-on-year increase of 8.9%, with a gross margin of 33.4% [1] - The company's revenue for 2023 was HKD 26.8 billion, with a net profit of HKD 5.38 billion, representing a year-on-year increase of 4.56% [2] Operational Highlights - Float glass profitability improved in the second half of 2023, with a gross margin exceeding 30% [1] - The company's float glass production capacity expanded with the ignition of new production lines in Yingkou and Chongqing in 2023, and further capacity increases are expected from the Jiangmen renovation line and overseas Indonesia production line in 2024-2025 [1] - The company remains the only player in the industry with capacity expansion [1] - Automotive glass profitability is expected to remain stable due to the company's strong pricing power in the aftermarket and its strategic construction of automotive glass processing lines in Malaysia and Indonesia [1] - Architectural glass revenue and profitability improved quarter-on-quarter, indicating a divergence in order-taking capabilities between large manufacturers and small processors [1] Shareholder and Dividend Information - Core management and shareholders have continued to increase their holdings since the second half of 2023 [1] - The company maintains a high dividend payout ratio of 49%, with dividend yields of 8% and 9% for 2023 and 2024 respectively [1] Market and Valuation - The current stock price is HKD 8.00 as of March 1, 2024 [3] - The 52-week stock price range is HKD 6.18 to HKD 16.28 [4] - The current market capitalization is HKD 33.78 billion [4]