Raycus(300747) 华创证券·2024-08-29 10:40Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 17.28 yuan, compared to the current price of 13.81 yuan [1] Core Views - The company's performance is under short-term pressure, with a focus on profit recovery and high-end market expansion [1] - Revenue and net profit declined in H1 2024, with revenue at 1.587 billion yuan (-11.40% YoY) and net profit at 96 million yuan (-14.46% YoY) [1] - Q2 2024 revenue was 786 million yuan (-21.83% YoY), with net profit at 32 million yuan (-52.51% YoY) [1] Financial Performance - Fiber laser revenue declined, but gross margin improved: pulse fiber laser revenue was 191 million yuan (-11.01% YoY) with a gross margin of 29.70% (+4.01pct YoY), while continuous fiber laser revenue was 1.263 billion yuan (-14.21% YoY) with a gross margin of 25.51% (+1.05pct YoY) [1] - Ultrafast laser revenue grew by 9.40% to 30.57 million yuan, but profits declined due to price reductions and delayed new technology adoption [1] - Overseas revenue increased significantly by 81.18% to 105 million yuan, driven by the company's global product launches and expansion in the automotive and new energy sectors [1] Product Development - The company launched new products including 355nm UV lasers, 266nm and 213nm deep UV lasers, and 1.3-1.7μm and 2μm near-infrared fiber lasers, targeting applications in medical, optical communication, and LiDAR fields [1] - The 120kW high-power laser has significant potential in high-end industrial applications and has already generated sales in H1 2024 [1] Financial Forecasts - Revenue for 2024-2026 is projected to be 4.097 billion yuan, 4.853 billion yuan, and 5.762 billion yuan, respectively, with net profit expected to be 306 million yuan, 383 million yuan, and 462 million yuan [1] - EPS for 2024-2026 is forecasted at 0.54 yuan, 0.68 yuan, and 0.82 yuan, with a 2024 PE ratio of 32x [1] Market Position - The company is a leading domestic fiber laser manufacturer, actively expanding into high-power and ultrafast laser markets, with a growing market share due to its technological advantages [1] Financial Ratios - Gross margin is expected to improve from 26.0% in 2023 to 27.8% in 2024, with net margin increasing from 6.1% to 7.7% [6] - ROE is projected to rise from 6.8% in 2023 to 8.9% in 2024, and further to 10.9% by 2026 [6]