Raycus(SZ:300747)2024-03-11 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [2]. Core Views - The company has shown significant improvement in profitability through various cost-reduction strategies, leading to an increase in gross margin by 8.13% and operating profit margin by 6.20% year-on-year in 2023 [1]. - The company is expected to benefit from high-power laser demand, overseas exports, and high-end manufacturing needs, with a focus on deepening relationships with core customers and expanding into new markets [14]. Financial Summary - Total revenue for 2023 is projected to be 3,675 million yuan, reflecting a year-on-year growth of 15.3% [3]. - The net profit attributable to the parent company for 2023 is estimated at 224 million yuan, with a substantial year-on-year increase of 446.9% [3]. - Earnings per share (EPS) for 2023 is forecasted to be 0.40 yuan, with a projected increase to 0.63 yuan in 2024 and 0.95 yuan in 2025 [3]. - The company's gross margin is expected to be 24.1% in 2023, improving to 25.8% in 2024 and 27.5% in 2025 [3]. - The return on equity (ROE) is projected to rise from 6.8% in 2023 to 12.9% by 2025 [3]. Profit Forecast and Valuation - The report maintains the profit forecast for 2023 while slightly adjusting the forecasts for 2024 and 2025 due to anticipated short-term cost increases from the new production base [2]. - The expected net profits for 2023, 2024, and 2025 are 224 million yuan, 355 million yuan, and 537 million yuan, respectively, with corresponding price-to-earnings (PE) ratios of 53, 34, and 22 [2].