NovelBeam Technology(SH:688677) Huafu Securities·2024-02-25 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [3][27]. Core Views - The company is projected to achieve a revenue of 471 million yuan in 2023, reflecting a year-on-year decrease of 1%. The net profit attributable to the parent company is expected to be 146 million yuan, down 20% year-on-year [1]. - The decline in profit is attributed to several factors, including increased share-based payment expenses due to equity incentives, higher investment losses from joint ventures, and increased depreciation from new facilities and equipment [2]. - The company is expected to recover in 2024, with revenue growth driven by the approval of new products and expanded sales channels, particularly with partners like China Shiyin and Guoyao Xinguang [2]. Summary by Sections Financial Performance - The company anticipates a fourth-quarter revenue of 94.35 million yuan, a 31% decrease year-on-year, with a net profit of 27.73 million yuan, down 35% year-on-year [1]. - The projected net profits for 2023-2025 are 150 million yuan, 250 million yuan, and 320 million yuan, respectively, with a compound annual growth rate (CAGR) of 20.5% [2]. Market Outlook - The transition period between old and new products has impacted short-term performance, but the company is expected to show growth elasticity as new products are launched [2]. - The company is actively expanding its domestic market presence and enhancing its marketing network to improve brand influence [2]. Valuation - The report maintains a 2024 price-to-earnings (P/E) valuation of 28 times, corresponding to a target price of 56.43 yuan [2].