Yangtze Optical Electronic (688143) Minsheng Securities·2024-08-29 07:49Investment Rating - The report maintains a "Recommend" rating for the company [1][3] Core Views - The company's 2Q24 performance showed sequential growth, with revenue increasing by 39.9% QoQ to RMB 80 million, although it decreased by 1.9% YoY [1] - The company's net profit attributable to the parent company in 2Q24 was RMB 9 million, a decrease of 62.1% YoY but an increase of 38.3% QoQ [1] - The company's gross margin in 1H24 decreased by 5.1 percentage points YoY to 47.0%, while the net margin decreased by 3.3 percentage points to 11.0% [1] - The company's revenue from special optical fibers grew rapidly, increasing by 80.9% YoY to RMB 47 million in 1H24 [1] - The company implemented a 2024 equity incentive plan with unlocking conditions requiring revenue of at least RMB 315 million in 2024 and RMB 378 million in 2025 [1] - The company's expense control improved, with the period expense ratio decreasing by 14.4 percentage points YoY to 35.2% in 1H24 [1] - The company's net cash flow from operating activities in 1H24 was -RMB 38 million, compared to RMB 12 million in 1H23, due to increased raw material purchases and reduced customer payments [1] Financial Forecasts - The company's revenue is expected to grow by 44.0% YoY to RMB 317 million in 2024, with further growth of 57.4% YoY to RMB 499 million in 2025 and 36.0% YoY to RMB 679 million in 2026 [2][4] - The company's net profit attributable to the parent company is forecasted to be RMB 41 million in 2024, RMB 90 million in 2025, and RMB 158 million in 2026, representing YoY growth rates of 161.7%, 121.3%, and 75.6% respectively [2][4] - The company's EPS is expected to be RMB 0.33 in 2024, RMB 0.74 in 2025, and RMB 1.29 in 2026 [2][4] - The company's PE ratio is projected to be 52x in 2024, 23x in 2025, and 13x in 2026 [2][4] Industry and Company Positioning - The company is a core supplier of fiber optic gyroscope components and integrated solutions in China, with a stable and reliable mass production and delivery capability [1] - The company has a deep presence in the inertial navigation and marine defense sectors and has successfully entered the new track of thermal runaway protection for energy storage, aligning with the development trend of new energy [1]