Raytron(SH:688002) HTSC·2024-12-22 04:45Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 84.05 [3][69]. Core Views - The company is expected to see significant growth in 2024, driven by an increase in new orders and a strong demand for infrared products in various sectors, including industrial temperature measurement and emerging consumer electronics [4][49]. - The company has implemented an employee stock ownership plan, which is expected to align the interests of employees with the long-term development of the company, enhancing employee motivation and confidence in future growth [5][50]. - The company is transitioning from a focus on infrared technology to a multi-dimensional perception company, expanding its capabilities in microwave, laser, and other sensing technologies [9][72]. Summary by Sections Financial Performance - The company reported new orders of approximately RMB 2.18 billion in the first half of 2024, with a total of RMB 960 million in new orders by the third quarter [4]. - Revenue has grown from RMB 685 million in 2019 to RMB 3.56 billion in 2023, with a projected revenue of RMB 4.38 billion in 2024, representing a year-on-year growth of 23.09% [12][71]. - The net profit attributable to the parent company has entered a growth trajectory, achieving RMB 496 million in 2023, a year-on-year increase of 58.20% [12][69]. Cost and Margin Analysis - The gross margin has stabilized around 50% since 2023, following fluctuations due to product mix changes [13]. - The company has seen a decrease in expense ratios, with the sales expense ratio expected to decline from 6.04% in 2023 to 5.20% in 2024 [17][31]. Business Segments - The infrared thermal imaging business is projected to generate revenue of RMB 3.73 billion in 2024, with a year-on-year growth of 24% [29]. - The microwave and RF business is expected to grow significantly, with projected revenues of RMB 4.45 billion in 2024, reflecting a growth rate of 10% [30]. - Other main businesses, including laser products, are anticipated to see revenue growth from RMB 0.71 billion in 2023 to RMB 0.92 billion in 2024, with a growth rate of 30% [61]. Market Position and Strategy - The company is positioned as a leader in the infrared field, with a comprehensive industrial layout and strong technological advantages [53]. - The company is actively expanding its product offerings and market reach, focusing on both military and civilian applications [9][52].