OPT(SH:688686)2024-09-20 13:03Investment Rating - The report gives the company an "Outperform" rating for the first coverage, with a target price of RMB 64.98 based on a 2024 PE of 42x [4][14]. Core Viewpoints - Short-term performance is under pressure, with a revenue decline of 15.65% YoY to approximately RMB 522 million in H1 2024, and a net profit decrease of 34.73% YoY to about RMB 113 million [11][4]. - Despite the revenue decline, the company is increasing its investment in sales and R&D, indicating a focus on future market and technology development [11][4]. - The company has completed a full product line layout in hardware and software, including new products like intelligent code readers and a cloud-based deep learning visual platform [12][11]. - The company is expanding its overseas presence, establishing offices in Vietnam and India, and has nearly 200 technical support personnel overseas [12][11]. Financial Summary - Revenue for 2024 is projected to be RMB 994 million, with expected growth rates of 5.35%, 21.44%, and 26.86% for 2024, 2025, and 2026 respectively [4][14]. - The net profit for 2024 is expected to be RMB 189 million, with EPS projected at RMB 1.55 [4][14]. - The company’s gross margin is expected to remain stable around 64% over the next few years [9][4]. Market Opportunities - There are significant domestic substitution opportunities in the machine vision sector, particularly in software where localization is still developing [13][2]. - The company is well-positioned to benefit from the ongoing domestic substitution process due to its self-developed technology and industry leadership [13][2].