Silan(600460) China Post Securities·2024-02-20 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a significant increase in net profit from -0.4 million in 2023 to 4.7 million in 2025 [6][9]. Core Insights - The company is experiencing revenue growth of approximately 13% year-on-year, despite challenges in the consumer electronics market. It is focusing on high-barrier markets such as large home appliances, communications, industrial, new energy, and automotive sectors [6]. - The company is increasing its R&D investment by about 22% year-on-year to accelerate the development of automotive and industrial product platforms [6]. - The completion of capital increase in Silan Mingjia strengthens the production capacity for SiC power modules, with expectations to ramp up production significantly by the end of 2024 [6]. Financial Summary - The company's revenue is projected to grow from 82.82 billion in 2022 to 129.42 billion in 2025, with a compound annual growth rate (CAGR) of approximately 18.21% [7][8]. - The net profit attributable to the parent company is expected to recover from -0.42 billion in 2023 to 0.47 billion in 2025, indicating a strong turnaround [7][8]. - The company's earnings per share (EPS) is forecasted to improve from -0.03 in 2023 to 0.28 in 2025 [7][8].