TES(SZ:003019) GOLDEN SUN SECURITIES·2024-08-21 09:10Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [2]. Core Views - The company, Chengzhan Optoelectronics, is positioned as a smart interactive device hardware integrator, focusing on commercial human-machine interaction solutions across various sectors [1][27]. - The market for commercial interactive display devices is expected to grow significantly, with a projected global market size of $54.2 billion by 2028, reflecting a CAGR of over 10% [1][12]. - The company is expanding its business through three main segments: ODM, OBM, and automotive display, which are expected to drive future growth [1][27]. Summary by Sections Company Overview - Chengzhan Optoelectronics was established in 2015 and provides a full range of services including R&D, manufacturing, and technical support for smart interactive devices [1][27]. - The company's products are widely used in sectors such as smart retail, finance, industrial automation, healthcare, and education [1][27]. Market Potential - The demand for commercial interactive display devices is anticipated to rise due to ongoing digitalization and smart upgrades across industries [1][12]. - The retail sector is seeing rapid growth in self-service checkout devices, with the number of installations in the U.S. expected to increase from 280,000 in 2022 to 450,000 by 2028 [1][20]. - The industrial sector is projected to see a market size of $6.6 billion for industrial control machines by 2028, with a CAGR of 5.5% [1][22]. Business Segments - The ODM business benefits from deep collaborations with leading clients, while the OBM segment has expanded its reach into overseas markets following the acquisition of MicroTouch™ [1][27]. - The automotive display segment has been enhanced through the acquisition of Hongtong Technology, which has a strong presence in the automotive display market [1][27]. Financial Projections - The company is expected to achieve net profits of 330 million, 371 million, and 460 million yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 84.4%, 12.8%, and 24.2% [1][4]. - The projected P/E ratios for the same years are 11, 10, and 8 times [1][4].