crashtagteamracingpc|英科再生(688087)：24Q1业绩高增519% 产品多元化+降本扩产推进中

Key events of investment: the company achieved revenue in 2023Crashtagteamracingpc. 5.5 billion yuan (year-on-year + 19)Crashtagteamracingpc.41%Crashtagteamracingpc, the same below), the net profit is 196 million yuan (- 15.22%); 2024Q1's revenue is 633 million yuan (+ 22.54%), and the net profit is 72 million yuan (+ 519.30%). In 2023, revenue from decorative building materials increased by 33% compared with the same period last year, accounting for 11% of revenue from PET products. The exchange profit in 2023 was 23 million yuan, and the net profit after deducting the exchange gain was 172 million yuan, which was 3.43% higher than that in 2022. The gross profit margin of sales in 2023 was 25.69% (- 1.01pct), and the net sales profit margin was 7.97% (- 3.25pct). In terms of products, 1) finished product frame: revenue 1.055 billion yuan (+ 2.62%), revenue accounted for 42.97%, gross profit margin 34.05% (+ 1.35pct), finished frame sales 48631 thousand pieces (+ 5.70%); 2) decorative building materials: revenue 696 million yuan (+ 32.56%), income 28.36%, gross profit margin 30.46% (+ 3.72pct), decorative building materials sales 10.49 million km (+ 14.93%) 3) particles: revenue 392 million yuan (+ 8.20%), revenue 15.96%, gross profit 6.36% (- 5.58pct), particle sales 70800 tons (+ 19.46%). The end of recycled plastic particles showed a fluctuating decline in 2023. 4) PET products: revenue 261 million yuan (+ 227.62%), revenue 10.62%, gross profit 2.68% (+ 1.78pct), PET product sales 38500 tons (+ 203.79%); 5) Environmental protection equipment: revenue 35 million yuan (- 12.60%), gross profit margin 61.4% (- 6.43pct), recovery equipment sales 103 units (- 15.57%). 2024Q1's homing net profit increased by 519%, and the net interest rate on sales increased by 9.16pct to 11.42%. The high performance of 2024Q1 is mainly due to 1) the steady growth of revenue based on the advantages of global marketing channels, and 2) the empowerment of overseas production bases and the improvement of capacity utilization of the Qinghua (Phase I) project in Vietnam. 3) 2024Q1 sales gross profit margin increased to 26.53%, year-on-year + 3.21pct, net sales margin 11.42%, year-on-year + 9.16pct, financial expenses-26 million yuan, compared with 11 million yuan in the same period last year. The net operating cash flow in 2023 increased by 90% compared with the same period last year. 1) the net cash flow of the company's operating activities in 2023 was 292 million yuan, with an increase of 90.06%; 2) the net cash flow of investment activities was-286 million yuan, with an increase of 31.43%; 3) the net cash flow of fund-raising activities was 537 million yuan, an increase of 37.49%. Recycled plastics industry chain + global layout, the main recycled PS, PET two high-quality tracks, vertical and horizontal expansion of categories. 1) decorative building materials and three frames to build a diversified product competitive advantage. By the end of 2023, the company has put into production 100,000 tons of recycled PS per year. In 2023, recycled PS, represented by finished frames and decorative building materials, accounted for 70% of revenue from high-value terminal products, and the gross profit margin was stable at 30% +. Vietnam Qinghua Phase I was put into production in June 2022, and the capacity utilization rate continued to improve, with a revenue of 142 million yuan (+ 411%) in 2023. The company's product category is expanded horizontally, and the "annual output of 30,000 tons of new modified recycled plastics comprehensive utilization project" produces recycled PE wood-plastic products, which will be officially put into production in 2024. 2) the cost reduction and production expansion of rPET production line are promoted synchronously. RPET anchors the international trend of food grade homogenization and utilization. By the end of 2023, it has been put into production of 50,000 tons per year and is under construction to produce 100,000 tons of recycled PET per year. The company promotes the construction of bottle brick recycling system, the improvement of production process and the laying of global marketing channels, and the gross profit margin of products is improved quarter by quarter. Profit forecast and investment rating: the forerunner of recycled plastics, diversified expansion of high-value products, cost reduction and promotion of rPET projects, taking into account downstream demand, capacity climbing, etc.CrashtagteamracingpcWe have lowered our forecast for 2024-2025 net profit from 376 million yuan to 261 million yuan. We expect it to be 379 million yuan in 2026, corresponding to 379 million times PE in 21-17-15, maintaining the "buy" rating. Risk tips: project production and schedule is not up to expectations, trade policy changes and the risk of levying tariffs. [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.