Absen(SZ:300389)2024-03-02 16:00Investment Rating - The report initiates coverage with a "Buy" rating for the company [6] Core Views - The display screen market is projected to reach a trillion scale, with the company setting a target of 10 billion in new orders. The company achieved 5.3 billion in new orders in 2023 and aims for 8 billion in 2024 and 10 billion in 2025, doubling from 2023 [4] - The company has shown strong governance improvements and enhanced supply chain management capabilities, which are expected to drive growth significantly above industry averages [4] - The company is positioned to benefit from the growing LED display market, with a focus on small-pitch LED technology, which is gaining market share due to its cost advantages [64] Financial Data and Profit Forecast - Total revenue (in million) is projected to be 4,045 in 2023, 6,023 in 2024, and 7,999 in 2025, with year-on-year growth rates of 44.7%, 48.9%, and 32.8% respectively [5] - Net profit attributable to the parent company (in million) is forecasted to be 323 in 2023, 469 in 2024, and 635 in 2025, with corresponding year-on-year growth rates of 58.9%, 45.4%, and 35.4% [5] - The current price-to-earnings ratio (PE) is 20 for 2023, 14 for 2024, and 10 for 2025, indicating a favorable valuation [6] Market Position and Competitive Advantage - The company has established a significant presence in the global market, with operations in over 140 countries and a network of approximately 6,000 channel partners [33] - The company emphasizes brand integrity by promoting complete display screen sales, which enhances its market reputation and customer trust [85] - The company has a strong focus on technological innovation, particularly in COB and MIP technologies, which are expected to drive future growth [91][94]