Focus Lightings Tech CO.(300708) 东兴证券·2025-02-12 10:26Investment Rating - The report maintains a "Recommend" rating for the company, indicating a positive outlook for its stock performance relative to market benchmarks [5][4]. Core Insights - The company achieved a record high in performance for the year 2024, with total revenue reaching 2.76 billion yuan, a year-on-year increase of 11.23%. The net profit attributable to shareholders was 196 million yuan, up 61.44% year-on-year, and the net profit excluding non-recurring items was 186 million yuan, reflecting a growth of 52.78% [1][2]. - The gross margin for 2024 was 13.70%, an increase of 3.26 percentage points compared to the previous year, driven by effective marketing strategies and strong demand for high-end products [2]. - The company is transitioning to a full-color LED chip supplier, with a focus on Mini/Micro LED products, which are expected to see significant market growth in the coming years [3][4]. Financial Performance Summary - In 2024, the company produced 22.83 million LED chips, marking a production increase of 5.02% from 2023 and 13.82% from 2022 [2]. - The operating cash flow significantly improved, with a net cash flow from operating activities of 524 million yuan, a 160% increase year-on-year [2]. - The company forecasts earnings per share (EPS) of 0.41 yuan, 0.54 yuan, and 0.65 yuan for the years 2025, 2026, and 2027, respectively [4][13]. Market Outlook - The Mini/Micro LED market is anticipated to grow, with the overall shipment of Mini LED backlight products in China expected to reach 12.8 million units in 2024, a 5% increase year-on-year [3]. - The global Micro LED market is projected to expand from approximately 623.6 million USD in 2023 to 25.65 billion USD by 2030 [3]. Company Overview - The company specializes in the research, production, and sales of compound semiconductor materials, primarily focusing on GaN-based high-brightness LED epitaxial wafers and chips, serving high-end applications in display backlighting, general lighting, and more [6].