BROADEX(SZ:300548) Minsheng Securities·2024-03-23 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][3]. Core Insights - The company reported a revenue of 1.675 billion yuan in 2023, a slight decrease of 0.57% year-on-year, and a net profit attributable to shareholders of 81 million yuan, down 59.49% year-on-year. The net profit after deducting non-recurring items was 11 million yuan, a decline of 92.41% year-on-year [1]. - The telecommunications sector faced short-term pressure due to inventory destocking and price reductions, with revenue from this market falling to 1.1 billion yuan, a decrease of 24.45% year-on-year, accounting for 65.63% of total revenue. In contrast, the data communication, consumer, and industrial interconnection markets saw revenue growth of 153.06%, reaching 572 million yuan, making up 34.14% of total revenue [1]. - The company is focusing on strengthening its active and silicon photonics layout, particularly in the data communication sector, with expectations of significant market growth in active optical cables (AOC), direct attach copper cables (DAC), and active electrical cables (AEC) from 2024 to 2028 [1][2]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.675 billion yuan, with a net profit of 81 million yuan. The telecommunications market's revenue was 1.1 billion yuan, while the data communication and industrial interconnection markets generated 572 million yuan [1]. - The gross margin for the telecommunications market decreased from 18.71% to 15.03% in 2023 [1]. Market Outlook - The report anticipates that the impact of inventory destocking in the telecommunications market will gradually diminish, and the upgrade of the domestic backbone network to 400G may provide marginal demand growth [1]. - The company is enhancing its domestic and international production capacity, with new factories in operation and under construction to meet growing customer demand [1]. Investment Projections - The projected net profits for 2024, 2025, and 2026 are 144 million yuan, 200 million yuan, and 258 million yuan, respectively, with corresponding PE multiples of 66X, 48X, and 37X [2][11].