20231028-东吴证券-福斯特-603806.SH-2023年三季报点评_7月低价拉低盈利_2023Q3盈利逐月恢复__3页_418kb

FOTY (603806) 2023 Q3 Earnings Summary

Event: Company released 2023 Q3 report showing mixed results, with slight improvement in Q3 profitability below initial expectations. The report highlighted that while Q1-3 revenue jumped 229% year-over-year, net profit declined significantly due to market conditions.

Glue Film Segment:

• Q1-3 glue film revenue rose 70+, with Q3 shipments up 24% year-over-year to 628 billion meters.
• Q3 glue film profit margin per square meter decreased slightly by 1-2 yuan compared to the previous quarter, primarily due to low margins in July.
• Also, in this segment, POE content increased by 5 percentage points, and capacity is expanding, with Vietnam production set to boost output to align with overseas demand.

New Materials Business:

• Back sheet shipments increased 38% year-over-year for Q1-3 to 12 billion meters, with Q3 showing modest growth.
• Photovoltaic dry film shipments rose slightly, and aluminum-plastic film shipments jumped 69%.

Financial Performance:

• Q3 operating expenses remained stable, with reductions in management fees.
• Operating cash flow decreased due to increased inventory, and expenses related to sales scale.

Investment Outlook:

• 2023-2025 earnings projection was revised downward to 203 billion yuan for 2023, rising 29% year-over-year.
• Based on cost advantages and leadership, the rating remains "Buy" with a price target of 35 yuan.

Risk Factors:

• Potential for increased competition and policy uncertainties could impact performance.