2023 full-year results exceeded our expectations the company announced 2023 annual results: operating income 371,Texasholdempokervideogame. 8.6 billion yuanTexasholdempokervideogame, year-on-year-13Texasholdempokervideogame.2%TexasholdempokervideogameThe net profit of returning home is 1.604 billion yuan,-7.0% compared with the same period last year. Among them, textile, clothing, toys and other import and export trade business realized income of 33.253 billion yuan, year-on-year-9.07%, gross profit margin of 16.38%, year-on-year + 2.81pcts; chemical business income of 3.718 billion yuan, year-on-year-39.4%, gross profit margin of 20.51%, year-on-year + 0.87pcts. Ruitai Xincai, a subsidiary, achieved a net profit of 466 million yuan in 2023,-39.39% year-on-year, and 444 million yuan in non-net profit,-42.54% year-on-year. The company's full-year results slightly exceeded our expectations, and gross profit margin rose against the trend. The company announced 1Q24 results: total revenue 8.096 billion yuan, year-on-year-0.5%; return to the mother net profit 213 million yuan, year-on-year-31.8%; deduction of non-net profit 219 million yuan, year-on-year-19.18%. The company's 1Q24 performance is slightly lower than we expected, mainly because the electrolyte seasonal off-season profit pressure, subsidiary Ruitai new materials net profit decreased significantly. Development trend gross profit margin of trade business has increased significantly. According to the statistics of the General Administration of Customs, although the trade volume of textiles and clothing in 2023 decreased somewhat from the previous year, the total volume of imports and exports reached 315.35 billion US dollars, down 7.7 percent from the same period last year. Of this total, exports totaled 293.64 billion US dollars, down 8.1 percent from the same period last year. The company's import and export trade business, such as textiles, clothing, toys, etc., is different from the "supplied material processing" mode of traditional foreign trade, providing one-stop services in the whole supply chain covering design and R & D, order receiving production, customs clearance and distribution and supply chain financing; at the same time, the company arranges overseas bases in advance to deal with trade frictions and reduce labor costs. We believe that there is still uncertainty in the current external environment, and the construction progress of the company's Myanmar and Vietnam projects may be delayed. With the gradual emergence of the effects of various stable foreign trade policies and the steady progress of a high level of opening up, the company's foreign trade business is still expected to achieve steady growth. The advantage of supply chain helps chemical business to pass through the cycle. We believe that the electrolyte industry has periodic overcapacity, the progress of the release of new capacity may slow down, and the price of electrolyte is expected to bottom out and rise in 2024; the company's electrolyte supply chain has obvious advantages and has a stable share among the customers of the downstream head battery factory. with the reshaping of the industry pattern is expected to usher in a cycle reversal. At the same time, according to the company announcement, bis-trifluoromethylsulfonimide lithium (LITFSI) has been widely used in solid-state lithium-ion batteries and other new batteries. We believe that electrolyte as a matching product, additives can increase the degree of differentiation, which is expected to form differential competition. The trading business of the profit forecast and valuation company is growing steadily, and the electrolyte is expected to bottom out and pick up. We will increase the net profit by 24% to 1.675 billion yuan in 2024 and introduce a net profit of 1.904 billion yuan in 2025. The current share price corresponds to a price-to-earnings ratio of 7.8 pounds 6.9x in 2024 / 2025. Taking into account the adjustment of earnings forecasts and the supply and demand pattern of the electrolyte industry, we maintained an outperformance of the industry rating and raised the target price by 8.2% to 9.2 yuan, corresponding to the price-to-earnings ratio of 8.9x2025, which is 14.6% higher than the current stock price. The demand downstream of the risk is lower than expected, and the industrial competition intensifies. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.