MAYAIR(SH:688376) Huafu Securities·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 41.45 CNY per share based on a 24x PE valuation for 2024 [2][19]. Core Insights - The company achieved significant growth in 2023, with a revenue of 1.504 billion CNY, representing a year-on-year increase of 22.54%. The net profit attributable to the parent company was 173 million CNY, up 40.73% year-on-year, and the net profit after deducting non-recurring gains and losses was 151 million CNY, an increase of 33.05% year-on-year. This growth is attributed to the company's proactive market expansion and stable revenue growth across various business segments [16][2]. - The company is rapidly expanding its overseas semiconductor and new energy businesses, with a three-year CAGR of nearly 50% in overseas revenue from 2020 to 2022. In 2023, new overseas orders accounted for 15%-20% of total orders, with plans to further penetrate North America and strengthen its presence in Europe and the Middle East [16][2]. Financial Performance Summary - The company's projected revenues for 2023-2025 are 1.504 billion CNY, 1.961 billion CNY, and 2.418 billion CNY, respectively, with corresponding net profits of 173 million CNY, 232 million CNY, and 286 million CNY. The PE ratios for these years are projected to be 26.14, 19.46, and 15.79, respectively [2][3]. - The company has initiated an expansion project at its Nanjing factory, expected to be operational in Q1 2024, which will increase its capacity by 50%. Additionally, overseas capacity in Malaysia is set to rise to 200 million CNY, primarily serving the semiconductor and new energy sectors [17][2]. Key Financial Metrics - In 2023, the company reported a gross margin of 39.7% and a net profit margin of 10.5%. The return on equity (ROE) is projected to be 11.6% in 2024 [23][3]. - The company's total assets are expected to grow from 2.725 billion CNY in 2023 to 3.518 billion CNY by 2025, with a debt-to-asset ratio of 42.83% [5][3].