MTC(SZ:002429) Guoxin Securities·2024-02-07 16:00Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.5 to 1.8 billion yuan in 2023, representing a year-on-year growth of 30.90% to 57.08% [1] - The company's television ODM business ranks third globally, with a year-on-year shipment increase of 24% in 2023, benefiting from the recovery of the North American television market [1] - The optimization of the LED chip product structure is anticipated to enhance profitability, with a monthly production capacity of 1.05 million GaN chips and 50,000 GaAs chips achieved in July 2023 [1] - The company has successfully launched high-margin Mini LED backlight products and COB packaging, which are expected to drive future growth [1] Summary by Relevant Sections Financial Forecasts and Indicators - The company's revenue is projected to increase from 15.03 billion yuan in 2022 to 17.72 billion yuan in 2023, reflecting a growth rate of 17.9% [2] - The net profit is expected to rise from 1.15 billion yuan in 2022 to 1.67 billion yuan in 2023, indicating a growth of 45.6% [2] - The earnings per share (EPS) is forecasted to increase from 0.25 yuan in 2022 to 0.37 yuan in 2023 [2] Business Performance - The company’s LED chip production capacity is being directed towards high-margin products such as Mini BLU and Mini RGB, which are expected to improve profitability [1] - The penetration rate of COB packaging in small-pitch displays has exceeded 50%, with plans to enter additional markets [1] Valuation Metrics - The projected price-to-earnings (P/E) ratios for 2023, 2024, and 2025 are 12.8, 9.7, and 8.1 respectively [2] - The company’s return on equity (ROE) is expected to improve from 8.4% in 2022 to 11.3% in 2023 [2]