Beijing JCZ Technology (SH:688291) Huachuang Securities·2024-03-06 16:00Investment Rating - The report gives a "Buy" rating with a target price of 27.20 CNY for the company, based on a 40x PE ratio for 2024 [10][18]. Core Insights - The company is a leading manufacturer of laser processing control systems in China, recognized as a national-level "specialized and innovative" small giant, with a significant market share in laser galvanometer control systems [10][7]. - From 2018 to 2022, the company's revenue grew from 0.70 billion CNY to 1.98 billion CNY, with a CAGR of 29.84%, while net profit increased from 0.17 billion CNY to 0.39 billion CNY, with a CAGR of 22.70% [10][49]. - The company is focusing on high-end laser galvanometer control systems and servo control systems, aiming to capture more market share through domestic substitution and technological advancements [10][18]. Summary by Sections Company Overview - The company was established in 2004 and went public on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2022, specializing in the research and sales of laser processing equipment motion control systems [7][10]. - Its main products include laser processing control systems, integrated hardware, and precision processing equipment, serving various sectors such as 3D printing, consumer electronics, new energy, semiconductors, and automotive [7][10]. Financial Performance - The company's revenue from laser processing control systems increased from 0.52 billion CNY in 2018 to 1.46 billion CNY in 2022, achieving a CAGR of 29.47% [8]. - In 2022, the company experienced a revenue decline due to adverse international and domestic economic conditions, but in the first three quarters of 2023, revenue grew by 7.33% year-on-year [49]. Market Position and Growth Potential - The company holds a leading position in the domestic market for laser galvanometer control systems, with a market share of approximately 32.29% in 2020 [10][18]. - The report highlights the potential for growth in high-end applications, where the company aims to increase its market share against international competitors [10][18]. Investment Outlook - The company is expected to achieve revenues of 2.20 billion CNY, 2.73 billion CNY, and 3.39 billion CNY for the years 2023, 2024, and 2025, respectively, with corresponding net profits of 0.44 billion CNY, 0.69 billion CNY, and 0.94 billion CNY [18]. - The report emphasizes the importance of the company's technological advantages and its strategic focus on high-end hardware and servo control systems to enhance its competitive position [10][18].