T&S(SZ:300570) Minsheng Securities·2024-02-21 16:00Investment Rating - The report maintains a "Recommend" rating for the company [1][7]. Core Insights - The company has launched an employee stock ownership plan (ESOP) to raise up to 30.51 million yuan, reflecting confidence in future growth. The plan involves the purchase of up to 1.8 million shares at 16.95 yuan per share, representing 0.7826% of the total share capital [1]. - The establishment of a wholly-owned subsidiary in Hong Kong and a planned investment in a subsidiary in Vietnam aims to enhance overseas production capacity and supply chain resilience, which is expected to attract new quality customers [1]. - The company is a leading manufacturer of high-density connectivity products and is well-positioned to benefit from the growing demand driven by AI advancements. The product matrix includes passive and active components, with ongoing development of 800G optical modules [1]. - The profit forecast for 2023-2025 has been revised upwards, with expected net profits of 160 million, 300 million, and 448 million yuan, corresponding to PE multiples of 54, 29, and 19 times [1]. Financial Summary - Total revenue is projected to grow from 934 million yuan in 2022 to 2,366 million yuan in 2025, with a growth rate of 38.32% in 2025 [3][12]. - The net profit attributable to shareholders is expected to increase from 180 million yuan in 2022 to 448 million yuan in 2025, with a growth rate of 49.3% in 2025 [3][12]. - The company's earnings per share (EPS) is forecasted to rise from 0.78 yuan in 2022 to 1.95 yuan in 2025 [3][12].