DAFENG INDUSTRY(603081) 甬兴证券·2025-03-14 11:10Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a positive outlook on its performance and growth potential [4]. Core Viewpoints - The company has signed multiple large contracts, which are expected to improve its financial performance. Notable contracts include a $17.5 million project in Tajikistan and contracts worth approximately 118 million yuan and 78 million yuan for projects in Yantai and Hangzhou respectively. Additionally, the company secured contracts totaling 326 million yuan for various stage machinery and equipment projects [2]. - The company is actively exploring new business opportunities in immersive performance experiences, leveraging its expertise in stage machinery and electrical control. It aims to provide comprehensive solutions for cultural performances and immersive experiences in tourism and theater sectors [2]. - The company is also investigating the application of artificial intelligence in the cultural and tourism sectors, collaborating with technology firms to explore new use cases [3]. Financial Forecast and Valuation - The company is projected to achieve net profits of approximately 96 million yuan, 175 million yuan, and 243 million yuan for the years 2024, 2025, and 2026 respectively. The corresponding price-to-earnings (PE) ratios are expected to be 65.31, 35.78, and 25.73 [4][6]. - Revenue is forecasted to decline significantly in 2024 but is expected to rebound with growth rates of 18.9% in 2025 and 26.9% in 2026 [6][14]. - The company’s earnings per share (EPS) is anticipated to increase from 0.23 yuan in 2024 to 0.59 yuan in 2026 [6][14].