NEO(600184) 浙商证券·2025-02-20 10:15Investment Rating - The report gives a "Buy" rating for the company, marking the first coverage [5][9]. Core Insights - The company is positioned as a leader in the defense equipment sector, with a strong focus on precision-guided weapons and optical materials, which are expected to see increasing demand due to advancements in military technology and informationization [1][36]. - The global market for anti-tank missile systems is projected to grow from approximately 20.9 billion RMB in 2023 to 25.2 billion RMB by 2030, with a CAGR of 2.6% [1]. - The company plans to raise up to 1.02 billion RMB through a private placement to enhance its production capabilities in high-performance optical materials and precision-guided products, which is expected to significantly boost revenue and profit margins [2][4]. Summary by Sections Company Overview - The company has a long history dating back to 1953 and has undergone significant restructuring to focus on defense and optical materials [22][23]. - It operates primarily in two segments: defense equipment and optical materials, with defense products accounting for 74% of revenue in 2023 [26][32]. Defense Sector - The demand for precision-guided weapons is increasing, driven by modernization efforts in military capabilities and the need for advanced information systems [36][40]. - The company is a key player in the large weapon systems market, which has high entry barriers and is dominated by state-owned enterprises [44]. Optical Materials and Components - The optical materials segment is experiencing a shift towards domestic production, with the company holding a 15% share of the global market and a 30% share in China [2]. - The global market for military helmet display systems is expected to grow from 430 million USD in 2023 to 680 million USD by 2030, with a CAGR of 6.8% [1]. Financial Projections - Revenue is projected to grow from 16.6 billion RMB in 2024 to 30.1 billion RMB in 2026, with a CAGR of 11% [3]. - The company anticipates a return to profitability by 2026, with net profits expected to reach 1.1 billion RMB [3][4].