Crystal-Optech(SZ:002273)2024-03-24 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting its stock price to outperform the benchmark index by over 20% in the next 6-12 months [9][13][21]. Core Views - The company demonstrated strong performance in 2023, with revenue of RMB 5.08 billion, a year-on-year increase of 16.01%, and a net profit of RMB 600 million, up 4.15% year-on-year. The gross margin improved to 27.81%, reflecting growth in the micro-prism and optical film panel businesses [21]. - The fourth quarter of 2023 saw significant growth, with revenue reaching RMB 1.53 billion, a 30.05% increase year-on-year, and net profit soaring by 68.83% to RMB 162 million. This growth was primarily driven by the mass production of the micro-prism project and improvements in market share and gross margin for optical film panels [21]. - The company is expected to benefit from the optical upgrade trend in smartphones in 2024, with new product launches from major brands like Huawei and Apple driving demand for its optical products [21]. Financial Summary - The company’s projected financials for 2024-2026 include: - Revenue: RMB 6.48 billion in 2024, RMB 7.91 billion in 2025, and RMB 9.63 billion in 2026, with growth rates of 27.6%, 22.1%, and 21.8% respectively [21][14]. - Net profit: Expected to reach RMB 755 million in 2024, RMB 990 million in 2025, and RMB 1.16 billion in 2026, with growth rates of 25.8%, 31.1%, and 17.5% respectively [21][14]. - EBITDA: Projected to be RMB 1.27 billion in 2024, RMB 1.64 billion in 2025, and RMB 2.02 billion in 2026 [21][14]. - The report also highlights an increase in earnings per share (EPS) from RMB 0.54 in 2024 to RMB 0.84 in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 28.6 to 18.6 [21][14]. Market Position and Growth Drivers - The company has secured over ten new contracts in the automotive sector, expanding its product offerings to include automotive cameras and LCoS PGU modules, positioning itself as a leading supplier in the AR-HUD market [21]. - The report emphasizes the company's effective operational strategies, which have allowed it to achieve significant results even during a downturn in the consumer electronics industry [21].