Sharetronic(SZ:300857) EBSCN·2024-03-10 16:00Investment Rating - The report gives a "Buy" rating for the company, Xiechuang Data (300857.SZ) [4][95]. Core Viewpoints - Xiechuang Data focuses on storage and IoT, with continuous revenue and profit growth. The company is expected to achieve a net profit of 275-310 million yuan in 2023, representing a year-on-year growth of 110.07%-136.81% [1][19]. - The storage industry has significant growth potential, with the enterprise SSD market in China projected to grow from 21.7 billion yuan in 2021 to 66.9 billion yuan by 2026 [3][37]. - The IoT business is expanding, with global IoT device connections expected to grow from 11.3 billion in 2020 to 27.1 billion by 2025 [2][54]. Summary by Sections Company Overview - Xiechuang Data, established in 2005, specializes in the R&D, production, and sales of data storage devices and IoT smart terminals. The company went public on the Shenzhen Stock Exchange in 2020 and has established long-term partnerships with major tech companies [1][9]. Storage Industry Potential - The company has seen its data storage device revenue grow from 621 million yuan in 2019 to 1.694 billion yuan in 2022, increasing its revenue share from 39.91% to 53.81% during the same period [3][61]. - Lenovo is the company's largest customer, contributing 1.529 billion yuan in revenue, which accounted for 51.67% of total revenue in 2021 [3][62]. IoT Business Expansion - The company's IoT business includes smart terminals, wearables, and smart cleaning products, benefiting from a growing market for consumer electronics and health monitoring devices [2][54]. - The revenue from IoT smart terminals was 506 million yuan in the first half of 2023, accounting for 27.50% of total revenue [24][105]. Financial Forecast - The company is projected to achieve revenues of 4.139 billion yuan in 2023, with net profits expected to reach 279 million yuan, reflecting a growth rate of 113.18% [12][95]. - The report forecasts revenues of 5.376 billion yuan and 6.508 billion yuan for 2024 and 2025, respectively, with corresponding net profits of 431 million yuan and 522 million yuan [95][110]. Valuation Analysis - The company's P/E ratios are projected to be 43, 28, and 23 for the years 2023, 2024, and 2025, respectively, indicating a favorable valuation compared to peer companies [95][110].