XGIMI(SH:688696) Guotou Securities·2024-02-24 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 98.79 CNY for the next six months, indicating an expected return exceeding 15% compared to the CSI 300 index [24][25]. Core Views - The company experienced a significant decline in performance in Q4 2023, with a year-on-year revenue drop of 77.9%, attributed to price reductions on older products and increased R&D and operational expenses [1][40]. - Despite domestic sales pressures, the company is seeing growth in its overseas business, with a focus on expanding its brand presence in markets such as Europe, the US, and Japan [23]. - The company has launched a new high-end product, the RS 10 Ultra, which is expected to strengthen its position in the premium projector market [23]. - The company has initiated a share buyback plan, signaling confidence in its future performance, with a total buyback amount ranging from 80 million to 160 million CNY [20]. Financial Performance - The company reported a revenue of 35.6 billion CNY for 2023, a decrease of 15.7% year-on-year, and a net profit of 1.2 billion CNY, down 75.3% year-on-year [40]. - The projected earnings per share (EPS) for 2023, 2024, and 2025 are 1.77 CNY, 2.15 CNY, and 2.64 CNY, respectively [24]. - The company’s gross margin is expected to stabilize as new products are launched and consumer demand gradually recovers [24]. Market Context - The overall demand in the projector industry remains under pressure, with a reported 64% decline in online LED projector sales in Q4 2023 [23]. - The company is strategically positioned as a leader in the domestic projector market, having diversified its product offerings across various technologies including LED, laser, and LCD [24].