Focuslight Technologies (SH:688167) Shanxi Securities·2025-05-21 08:23Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company is currently experiencing a transitional phase due to recent acquisitions, which has temporarily impacted profitability. However, there is optimism regarding the recovery of profitability post-transition [1][6] - The company has shown a revenue growth of 10.49% year-on-year for 2024, reaching 620 million yuan, despite a net loss of 175 million yuan [1][7] - The company is focusing on expanding its midstream business, which has seen significant growth, particularly in the automotive and semiconductor sectors [1][6] Financial Performance Summary - In 2024, the company's revenue from upstream and midstream businesses was 441 million yuan and 176 million yuan, respectively, with year-on-year growth of 1.26% and 46.12% [1] - The company completed acquisitions of Swiss Juguang and Heptagon, which contributed positively to sales [1] - The gross margin for 2024 was 28.11%, down 19.85 percentage points year-on-year, primarily due to pricing pressures in the semiconductor laser components and materials business [4][6] Future Outlook - The company is expected to see a significant recovery in net profit from 2025 to 2027, with projections of 19 million yuan, 60 million yuan, and 121 million yuan, respectively, indicating year-on-year growth rates of 111.0%, 208.7%, and 102.9% [7][8] - The company aims to enhance its market position in high-growth areas such as silicon photonics, consumer electronics, and semiconductor equipment, which are anticipated to drive valuation recovery [7][8]