NEO(SH:600184) China Post Securities·2025-05-13 08:40Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [2][9]. Core Views - The company is experiencing a performance turning point, driven by dual growth from military and civilian sectors. The 2024 annual report shows a significant revenue decline of 41% year-on-year, with a net loss of 2.06 billion yuan, a decrease of 398% [4][5]. - The decline in defense product revenue is the primary reason for the losses in 2024, with a 67% drop to 5.26 billion yuan. However, the optical materials and devices segment saw a revenue increase of 29% to 7.42 billion yuan [5]. - The company plans to achieve a revenue target of 2.5 billion yuan in 2025, with expectations to return to profitability. The first quarter of 2025 showed a revenue increase of 33% year-on-year [6][9]. Financial Summary - In 2024, the company reported total revenue of 1.297 billion yuan, with a projected recovery to 2.591 billion yuan in 2025, representing a growth rate of 99.8% [11][14]. - The projected net profit for 2025 is 741 million yuan, with significant growth rates of 136% in 2025, 106% in 2026, and 65% in 2027 [9][11]. - The company plans to raise up to 1.02 billion yuan through a private placement to fund high-performance optical materials and advanced components projects, which are expected to enhance production capacity significantly [6][9].