FSL(SZ:000541) Guotai Junan Securities·2024-10-11 05:38Investment Rating - The investment rating for the company is "Accumulate" [2] Core Views - The report highlights the acquisition of Hule Electric, which enhances the company's layout in the marine lighting industry, with expected synergies [3] - The company maintains its earnings forecast, projecting EPS for 2024-2026 to be 0.22, 0.25, and 0.29 yuan, representing year-on-year growth of 16%, 16%, and 15% respectively [3] - The target price has been raised to 6.60 yuan from the previous 5.50 yuan, based on a 30x PE valuation for 2024, reflecting an increase in comparable company valuations [3] Summary by Sections Acquisition Details - The company completed the acquisition of 66% of Hule Electric in mid-2024 through its wholly-owned subsidiary, aiming to strengthen its marine lighting business in response to national strategies [3] - Hule Electric specializes in ship lighting and related electrical equipment, holding qualifications as a national high-tech enterprise and military product supplier [3] Synergy Expectations - The acquisition is expected to create significant synergies with existing projects of the subsidiary, Hainan Technology Company, which is also expanding into military marine lighting [3] - The report anticipates that the acquisition will provide complementary product advantages and assist in brand customer resource integration [3] Financial Projections - The financial summary indicates a steady increase in revenue, with projected operating income rising from 9,621 million yuan in 2024 to 11,887 million yuan in 2026, reflecting a compound annual growth rate [8] - Net profit attributable to shareholders is expected to grow from 336 million yuan in 2024 to 448 million yuan in 2026, with corresponding EPS growth [8] Market Data - The company's market capitalization is reported at 8,209 million yuan, with a current price of 5.30 yuan [4] - The stock has traded within a range of 4.40 to 8.34 yuan over the past 52 weeks [4] Financial Ratios - The report provides key financial ratios, including a current P/E ratio of 28.27 for 2023 and a projected P/B ratio of 1.31 for 2023 [9] - The net asset value per share is reported at 4.05 yuan, with a current market price reflecting a price-to-book ratio of 1.3 [5]