Lante Optics(SH:688127) Guotai Junan Securities·2024-03-02 16:00Investment Rating - The investment rating for Lante Optical (688127) is "Buy" with a target price of 29.60, up from the previous forecast of 25.41, while the current price is 20.07 [6][28]. Core Views - The report highlights that the company's performance exceeded expectations, with all business segments achieving positive growth. The revenue for 2023 is projected to be 754 million, representing a year-on-year increase of 98.35%, and the net profit is expected to reach 185 million, up 92.2% [28]. - The growth is attributed to the expansion of micro-prism products, advancements in automotive intelligence driving the growth of glass aspheric lenses, and the benefits from emerging consumer electronics such as AR/VR [28]. - The company maintains a strong competitive advantage in precision glass optical component processing and has several core technological achievements in various fields [3][28]. Financial Forecast - Revenue is forecasted to grow from 754 million in 2023 to 1,640 million by 2025, with a compound annual growth rate (CAGR) of 41% [19]. - Net profit is expected to increase from 185 million in 2023 to 416 million in 2025, reflecting a CAGR of 39.3% [19]. - The EBIT margin is projected to stabilize around 29% in the coming years, indicating strong operational efficiency [19]. Valuation Metrics - The report indicates a PE ratio of 43.65 for 2023E, decreasing to 19.38 by 2025E, suggesting an improving valuation as earnings grow [19]. - The PB ratio is expected to decline from 4.91 in 2023E to 3.61 in 2025E, indicating a more attractive valuation over time [19]. - The company’s ROE is projected to rise from 11.2% in 2023E to 18.6% in 2025E, reflecting enhanced profitability [19].