NOVEL OPTICS(SH:603297) SINOLINK SECURITIES·2024-08-15 08:00Investment Rating - The report maintains a "Buy" rating for Yongxin Optical, expecting a price increase of over 15% in the next 6-12 months [7]. Core Views - Yongxin Optical is a leading domestic microscope manufacturer, with 2023 microscope revenue reaching 400 million RMB, a year-on-year increase of 16%. The high-end NEXCOPE series has seen revenue grow from 4 million RMB in 2018 to nearly 140 million RMB, with a compound annual growth rate exceeding 100% [1][3]. - The company is benefiting from the equipment renewal cycle as outlined in the State Council's action plan, which is expected to enhance its market position [1]. - Yongxin Optical has received significant recognition, including the first prize for technological progress from the Chinese Instrument and Meter Society, highlighting its capabilities in high-end imaging technology and addressing critical technology challenges [1]. - The company is actively expanding its overseas market presence, with successful operations in Europe, Japan, and Singapore, leading to a substantial increase in international sales [1]. Summary by Sections Business Performance - In 2023, Yongxin Optical's revenue was 854 million RMB, with a growth rate of 3.02%. The projected revenue for 2024 is 1.062 billion RMB, reflecting a growth rate of 24.37% [3][4]. - The net profit attributable to the parent company for 2023 was 235 million RMB, with a projected increase to 259 million RMB in 2024, representing a growth rate of 10.04% [3][4]. - The diluted earnings per share (EPS) for 2023 was 2.117 RMB, expected to rise to 2.330 RMB in 2024 [3][4]. Valuation and Forecast - The net profit forecasts for 2024, 2025, and 2026 are 260 million RMB, 360 million RMB, and 440 million RMB, respectively, with growth rates of 10%, 39%, and 23% [1]. - The current price-to-earnings (P/E) ratios are projected at 24, 17, and 14 for the years 2024, 2025, and 2026 [1].