OPT(SH:688686)2024-09-22 07:12Investment 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 Insights - Short-term performance is under pressure, with H1 2024 revenue at approximately RMB 522 million, down 15.65% YoY, and net profit attributable to shareholders at RMB 113 million, down 34.73% YoY [11][12]. - The company is maintaining its investment levels despite declining revenue, focusing on future market and technology layouts, as evidenced by increased sales and R&D expense ratios [11][12]. - 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][13]. - There is a continued expansion in overseas markets, with increased investments in regions like Vietnam and India, and the establishment of R&D centers in Europe and Japan [12][13]. 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 company’s EPS is forecasted to be RMB 1.55, RMB 1.91, and RMB 2.43 for 2024, 2025, and 2026 respectively [4][14]. - The gross margin is expected to remain stable around 64% over the forecast period [9][14]. Market Opportunities - There are significant domestic substitution opportunities in the machine vision sector, particularly in software where localization is still developing [13]. - The company is well-positioned to benefit from the domestic substitution process due to its self-developed technology and industry leadership [13].