MTC(SZ:002429) CMS·2025-09-11 12:36Investment Rating - The report maintains a "Strong Buy" investment rating for the company [1][3]. Core Insights - The company is a leading player in the LED industry with a complete vertical integration capability from "LED chip-packaging-module-application," benefiting significantly from the Mini/Micro LED technology wave [1]. - Recent breakthroughs in the optical communication business are expected to become a long-term growth driver for the company [1]. - The company has achieved substantial production capacity increases in its Vietnam facility, preparing for overseas market demand, despite short-term operational cost increases affecting financial performance [6]. - The company is strategically positioned to leverage opportunities in the AI computing era through its MicroLED optical module technology [6]. Financial Data and Valuation - Total revenue is projected to reach 17.167 billion CNY in 2023, with a year-on-year growth of 14%, and is expected to decline by 4% in 2025 before rebounding [2][13]. - Operating profit is forecasted at 1.714 billion CNY for 2023, with a significant growth of 42% year-on-year, but a decline of 15% is expected in 2025 [2][14]. - Net profit attributable to shareholders is estimated at 1.588 billion CNY in 2023, reflecting a 39% increase, with a projected decrease of 6% in 2025 [2][14]. - The company’s PE ratio is expected to be 16.9 in 2023, increasing to 17.9 in 2025 before decreasing to 10.8 by 2027 [2][14]. Business Developments - The company has made significant advancements in its optical communication segment, with expected revenue contributions of 4-5 billion CNY from optical devices and modules in 2025 [6]. - The company plans to invest in a PCB production line to ensure supply for Mini/MicroLED applications, enhancing vertical integration and cost control [6]. - The company has successfully launched 100G optical module products and aims to complete the development of 400G/800G products by the end of the year [6].