Investment Rating - The report maintains a "BUY" rating for Intron (01760.HK) with a target price of HKD 2.85 per share, down from HKD 6.13 [2][10]. Core Insights - Intron reported a year-on-year revenue increase of 20.1% to RMB 5,802.3 million for FY 2023, but the gross margin fell by 2.9 percentage points to 18.7%, which was lower than estimates [3][4]. - The company experienced a significant decline in net profit, retreating by 23.0% year-on-year, attributed to increased R&D expenses and a competitive pricing environment [4][10]. - The revenue growth was driven primarily by NEV Solutions, but competition led to manufacturers opting for lower-cost solutions, impacting growth in advanced driver-assistance systems (ADAS) [4][10]. - A shift in pricing strategy was noted, with a gross margin of 17.1% in the second half of 2023, indicating adjustments to cope with market pressures [4][10]. - The report anticipates continued challenges in 2024, with profit margins expected to remain under pressure due to lower gross margins and high R&D expenses [4][10]. Financial Summary - Revenue projections for the next few years are as follows: RMB 6,840.5 million in 2024, RMB 7,524.0 million in 2025, and RMB 8,174.4 million in 2026, reflecting a year-on-year growth rate of 17.9%, 10.0%, and 8.6% respectively [15]. - The gross profit is projected to increase from RMB 1,083.6 million in 2023 to RMB 1,247.8 million in 2024, with gross margins expected to stabilize around 18.8% in 2026 [15][17]. - The net profit is forecasted to decline significantly in 2024, with estimates of RMB 219.4 million, before recovering to RMB 301.3 million in 2025 and RMB 398.7 million in 2026 [15]. Operational Outlook - The report indicates a cautious operational outlook, with estimates cut by 51% to 58% due to ongoing difficulties, including lower gross margins and increased financial expenses [4][10]. - The company is expected to face a tightening working capital situation due to a longer cash conversion cycle and high R&D expenses [13][17].

Investment Rating - The report assigns a "BUY" rating for Pentamaster (01665.HK) with a target price of HK$ 1.18, reflecting a potential upside from the current price of HK$ 0.82 [1][7]. Core Insights - The medical segment of Pentamaster has shown significant growth, with a year-on-year increase of 75.2% to MYR 148.2 million, contributing to a gross margin surge to 31.9% in Q4 [1]. - The overall revenue for FY 2023 reached MYR 691.9 million, marking a 15.2% growth, while the net profit increased by 6.7% [1][7]. - The automotive segment remains a key contributor, accounting for 47.6% of total revenue, although it has faced order delays impacting momentum [1][7]. - The report anticipates sustained robust performance in the medical segment for at least the next two years, driven by strong order visibility from key customers [1][7]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: MYR 813.0 million in 2024, MYR 960.7 million in 2025, and MYR 1,047.5 million in 2026, indicating a growth trajectory [1][11]. - Gross profit is expected to increase from MYR 209.6 million in 2023 to MYR 336.8 million by 2026, with gross margins improving from 30.3% to 32.1% over the same period [1][11]. - Net profit is projected to grow from MYR 142.2 million in 2024 to MYR 225.2 million in 2026, reflecting a consistent upward trend [1][11]. Segment Analysis - The medical segment is highlighted as a primary driver for future growth, while the automotive segment is experiencing temporary setbacks due to market fluctuations [1][7]. - The semiconductor segment has shown stable growth, but the electro-optical segment is expected to remain weak due to stagnation in the smartphone market [1][7]. Operational Developments - The operational timeline for Campus 3 has been adjusted, with full operations expected to commence in Q1 2025, and production starting in Q3 2024 [1][7].

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of HK$ 1.18, reflecting the expected performance of the medical business segment and the overall growth potential despite challenges in the automotive sector [2][29]. Core Insights - The company reported a total revenue of approximately 691.9 million ringgit for the fiscal year 2023, representing a year-on-year growth of 15.2%. The automotive segment continues to be the main contributor, accounting for about 47.6% of total revenue, while the medical segment saw a significant increase of 75.2% to 150 million ringgit [2][29]. - The gross profit margin improved to 31.9% in the fourth quarter, leading to an annual gross margin and net profit margin of 30.3% and 20.6%, respectively [2][29]. - The medical business segment is expected to maintain strong growth due to clear visibility of orders from key clients, which will be a major growth driver for the company in the coming years [2][29]. Summary by Sections Financial Performance - Total revenue for 2023 is projected at 691.9 million ringgit, with expected growth rates of 17.5% in 2024 and 18.2% in 2025 [2][29]. - The gross profit is forecasted to increase from 209.6 million ringgit in 2024 to 336.8 million ringgit by 2026, with gross margins improving from 30.3% to 32.1% over the same period [2][29]. Business Segments - The automotive segment is facing headwinds, with a slight decline in orders impacting growth. However, the long-term growth trajectory for electric vehicles and autonomous driving remains positive [2][29]. - The medical segment is expected to continue its robust performance, supported by automation solutions and a clear order visibility from major clients [2][29]. Operational Updates - The company has adjusted the timeline for its third factory, with both phases now expected to commence operations in the first quarter of 2025, while production will gradually start in the third quarter of 2024 [2][29]. - The report highlights the importance of the medical segment in providing support during critical times, which is expected to offset the slowdown in the automotive segment's growth [2][29].