MTC(002429)2025-04-17 10:59Investment Rating - The report maintains a "Buy" rating for the company with a target price of 5.60 RMB [8][9]. Core Views - The company achieved a revenue of 20.326 billion RMB in 2024, representing a year-on-year increase of 18.4%, while the net profit attributable to the parent company was 1.602 billion RMB, a slight increase of 0.89% [1][7]. - The company faces challenges in 2025 due to potential tariffs on products exported to the U.S., but it may mitigate this by increasing production at its Vietnam factory [2][5]. - The LED business remains strong, with a revenue of 5.33 billion RMB in 2024, up 18.3%, and the company is expected to continue benefiting from its integrated advantages in the LED supply chain [3][4]. Summary by Sections Financial Performance - In 2024, the company's gross margin was 17.17%, down 1.27 percentage points year-on-year, primarily due to adjustments in the networking business [4]. - The overall expense ratio decreased by 0.28 percentage points, with a notable reduction in sales expenses [4]. Business Segments - The multimedia business generated 15 billion RMB in revenue in 2024, with a total TV shipment of 12.5 million units, reflecting a 14% increase year-on-year [2]. - The LED segment is expected to maintain its growth trajectory, particularly in the COB (Chip on Board) business, which has seen significant capacity expansion [3]. Earnings Forecast - The report has adjusted the earnings forecast for 2025-2027, predicting EPS of 0.35, 0.39, and 0.41 RMB respectively, reflecting a downward revision of 24% and 26% from previous estimates [5][7]. - The average PE ratio for comparable companies in 2025 is projected to be 21x, while the company is assigned a PE of 16x due to tariff uncertainties [5].