四方光电：终止覆盖

Investment Rating - The investment rating for the company is Neutral, with a 12-month target price of RMB 23.9, indicating a downside potential of 35.7% from the current price of RMB 37.16 [1][5]. Core Insights - The company is a leading player in the domestic gas sensing technology sector, focusing on the development of gas and particulate sensors used in various applications such as air quality control, industrial process monitoring, and automotive emissions monitoring [2]. - Despite stable orders from the automotive sector, the company faces multiple challenges, including weak demand in indoor air quality sensors due to the real estate market, a decline in the medical gas sensor business due to anti-corruption measures, and increasing costs in sales management and R&D [2][3]. - Revenue is expected to grow at a compound annual growth rate (CAGR) of 16% from 2023 to 2030, driven by robust growth in automotive sensors and safety monitoring sensors, while indoor air quality and medical health applications may hinder overall performance [3]. Summary by Sections Current Outlook - The company is expanding its market presence in the automotive sector while maintaining a strong foothold in air quality and medical markets [2]. - Challenges include a shift towards lower-margin automotive sensors and rising operational costs impacting net profit margins [2]. Profit Forecast and Valuation - Revenue growth is projected at a CAGR of 16% from 2023 to 2030, with specific segments like automotive sensors expected to grow at 23% CAGR [3]. - Net profit is expected to grow at a slower pace of 14% CAGR due to product mix changes and high sales and R&D expenses [3]. - The target price is based on a 15x P/E ratio for 2025, with potential upside risks related to market awareness and policy support [3].