Raycus(300747) GF SECURITIES·2024-07-18 06:31Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 17.38 RMB per share [4] Core Views - The fiber laser market is highly competitive, with domestic fiber lasers showing significant potential. The global laser equipment market revenue expanded from $9.7 billion in 2015 to $20.1 billion in 2022, with domestic fiber lasers capturing over 60% market share in 2022 [2] - The company has established itself as a leading domestic fiber laser manufacturer, breaking foreign monopolies and achieving rapid growth in laser sales from 18,000 units in 2017 to 159,000 units in 2023 [10] - The company is expected to achieve net profits of 327 million, 427 million, and 565 million RMB in 2024-2026, with year-on-year growth rates of 50.5%, 30.4%, and 32.5% respectively [11] Company Overview - The company is a leading domestic fiber laser manufacturer, focusing on fiber lasers and building a first-class laser enterprise in China [21] - It has participated in the formulation of national and international standards, including the "JB/T 12632-2016 Fiber Laser" and the international standard for "Industrial Fiber Laser Parameters and Testing Methods" [22] - The company has achieved vertical integration of the upstream supply chain and actively explored downstream markets such as laser medical and photovoltaic applications [10] Market and Industry Analysis - The global laser equipment market revenue grew from $9.7 billion in 2015 to $20.1 billion in 2022, with a CAGR of 10.95%. The Chinese laser equipment market revenue grew from 34.5 billion RMB in 2015 to 91 billion RMB in 2023, with a CAGR of 12.89% [78] - Fiber lasers have become the mainstream in the laser industry, with their market share in China increasing from around 50% in 2016 to nearly 70% in 2022 [106] - The domestic fiber laser market is highly competitive, with the top three companies (including the report company) accounting for over 73% of the market share in 2022 [114] Financial Performance and Projections - The company's revenue grew from 2.01 billion RMB in 2019 to 3.68 billion RMB in 2023, with a CAGR of 16.32%. However, revenue declined in 2022 due to the impact of the pandemic and price adjustments [64] - The company's gross margin and net margin have shown signs of recovery, with gross margin improving from 26% in 2022 to 28.49% projected for 2026 [159] - The company's overseas revenue grew significantly from 51 million RMB in 2021 to 141 million RMB in 2023, with a CAGR of 66.69% [125] Strategic Initiatives - The company has achieved vertical integration of the upstream supply chain, mastering key technologies for core components such as pump sources, fiber couplers, and power combiners [120] - It has actively expanded into overseas markets, with overseas revenue growing rapidly and accounting for an increasing share of total revenue [125] - The company has focused on R&D innovation, with R&D expenses reaching 338 million RMB in 2023, accounting for 8-9% of revenue [149] Product Portfolio - The company offers a comprehensive range of laser products, including continuous fiber lasers, pulsed fiber lasers, and ultrafast lasers, covering a wide range of applications from industrial processing to medical and scientific research [52] - Its product portfolio includes high-power fiber lasers, direct semiconductor lasers, and ultrafast lasers, with applications in welding, cutting, marking, and medical fields [54][58][63]