Absen(SZ:300389) ZHESHANG SECURITIES·2025-04-03 10:05Investment Rating - The investment rating for the company is "Accumulate" (maintained) [3] Core Views - The domestic market is currently facing challenges, but the overseas LED direct display market is experiencing steady growth, particularly in North America, Southeast Asia, the Middle East, and Latin America. The company has established a differentiated brand advantage through years of deep cultivation and reasonable layout in overseas markets, leading to a healthy growth trajectory [2] - The company adopts a light asset model to navigate the industry's downturn, maintaining operational quality superior to peers. Despite a temporary decline in profits, key financial indicators remain robust, with a net profit margin of approximately 2.8% and ROE of about 8% for 2024 [2] Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of approximately 3.66 billion yuan, a year-on-year decrease of 8.58%, and a net profit of 117 million yuan, down 62.98% year-on-year. The domestic market revenue was around 732 million yuan, a decline of approximately 48.84% [6][9] - The overseas business continues to grow, with projected revenues of about 2.93 billion yuan in 2024, reflecting a year-on-year increase of approximately 13.78% [2][6] Future Projections - The company forecasts net profits of 135 million yuan, 191 million yuan, and 270 million yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 30.5, 21.6, and 15.2 [7][9] - Revenue is expected to grow significantly in the coming years, with projections of 4.33 billion yuan in 2025, 5.62 billion yuan in 2026, and 7.60 billion yuan in 2027, indicating growth rates of 18.16%, 29.91%, and 35.24% respectively [9]