Quechen Company(605183) 海通国际·2024-04-29 11:30Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][7][27] Core Views - The company is a leading manufacturer of precipitated silica, focusing on the research, development, manufacturing, and sales of silica products, with a complete industrial chain from raw materials to final products [13][14] - The company achieved an operating income of 1.81 billion yuan in 2023, a year-on-year increase of 3.66%, and a recurring net profit of 394 million yuan, up 8.91% year-on-year [14] - The company is actively expanding its product offerings and has successfully commercialized new technologies, including biomass-based silica production [26] Financial Performance - In 2023, the company recorded a gross profit margin of 29.44%, up 0.83 percentage points year-on-year, and a net profit margin of 22.78%, up 1 percentage point year-on-year [14] - For 2024, the company is expected to achieve a net profit of 495 million yuan, with corresponding EPS of 1.19 yuan, and a target price of 23.80 yuan based on a PE ratio of 20x [27] - The company forecasts sales volume growth of 20%, 15%, and 12% for the years 2024 to 2026, respectively [3] Sales and Market Trends - The company's main product, silicon dioxide, achieved a sales volume of 86,900 tonnes in Q1 2024, representing a year-on-year increase of 33.49% [15] - The average price of silicon dioxide decreased by 4.43% year-on-year, while raw material prices for soda ash, quartz sand, and sulfur saw significant declines [15] Production Capacity and Utilization - The company has been releasing production capacity for its main product, leading to record sales volumes [14] - The capacity utilization rate at the company's Thailand base has improved rapidly, enhancing economic benefits [14] ESG Initiatives - The company is advancing in green and low-carbon development, with successful projects in biomass-based silica production and carbon capture technology [17][26]