Changzhou Fusion New Material (688503) 东吴证券·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for the company, considering the expected performance over the next 6 to 12 months [13][16]. Core Insights - The company reported a revenue of 10.29 billion yuan for 2023, representing a year-on-year increase of 58.21%. The net profit attributable to the parent company was 442 million yuan, up 13% year-on-year. However, the fourth quarter of 2023 saw a revenue of 2.89 billion yuan, which was a 77.96% increase year-on-year but a 10.15% decrease quarter-on-quarter. The gross profit margin for 2023 was 9.82%, down 1.73 percentage points from the previous year [14][16]. - The company is expanding its production capacity and enhancing its competitive edge through vertical integration. By the end of 2023, the production capacity reached 3,000 tons, with a project in Thailand contributing an additional 600 tons. The company has achieved 100% domestic production of PERC silver powder and approximately 50% for TOPCon silver powder [15][16]. - The report projects net profits for 2024, 2025, and 2026 to be 740 million yuan, 880 million yuan, and 1.02 billion yuan, respectively, with growth rates of 67%, 19%, and 16% [16]. Financial Summary - The company's total revenue is forecasted to grow from 10.29 billion yuan in 2023 to 19.74 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 14.93% [6]. - The net profit attributable to the parent company is expected to increase from 442 million yuan in 2023 to 1.02 billion yuan in 2026, reflecting a strong growth trajectory [6][16]. - The earnings per share (EPS) is projected to rise from 2.67 yuan in 2023 to 6.17 yuan in 2026, indicating a significant improvement in shareholder value [6][16].