TORCH ELECTRON(603678) 民生证券·2024-03-18 16:00Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 22.75 CNY [1]. Core Views - The company reported a net profit of 320 million CNY for 2023, a year-on-year decrease of 60.3%, which aligns with market expectations. The total revenue for the year was 3.1 billion CNY, down 59.8% year-on-year due to industry downturns and weak consumer electronics demand [1]. - In Q4 2023, revenue increased by 9% year-on-year to 790 million CNY, while profit decreased by 61% to 30 million CNY. The net profit margin fell by 9.0 percentage points to 30.6% due to a reduction in gross margin [1]. - The company has seen a 59% increase in self-produced ceramic materials, with a revenue of 2.19 billion CNY, representing a 13.3% year-on-year growth. The gross margin for these materials decreased by 15.41 percentage points to 55.6% [1]. - R&D expenses grew by 35% to 1 billion CNY, indicating a commitment to core technology development [1]. Financial Summary - The company achieved total revenue of 3.504 billion CNY in 2023, with a growth rate of -1.5%. The net profit attributable to shareholders was 318 million CNY, reflecting a -60.3% growth rate [2]. - Forecasts for the next three years predict revenues of 4.054 billion CNY in 2024, 4.682 billion CNY in 2025, and 5.337 billion CNY in 2026, with respective growth rates of 15.7%, 15.5%, and 14.0% [2]. - The projected net profit for 2024 is 375 million CNY, with a growth rate of 17.9%, and is expected to reach 505 million CNY by 2026 [2]. Investment Outlook - The company is positioned as a leading enterprise in the special MLCC sector and has the capability for large-scale production of ceramic-based composite materials, which is expected to open new growth avenues. The expansion into active power devices is anticipated to enhance competitive strength [1][2].