ConST(SZ:300445) Great Wall Securities·2024-04-02 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [8][38]. Core Insights - The company is expected to benefit from the growing MEMS pressure sensor market, with projections indicating a market size increase from $1.684 billion in 2019 to $2.215 billion by 2026, representing a compound annual growth rate (CAGR) of approximately 5% [1][11]. - The company has a diversified product structure and a comprehensive sales system that can respond quickly on a global scale, which is expected to drive future growth, particularly through the expansion of its SaaS services [2][38]. - The company achieved a revenue of 498 million yuan in 2023, a year-on-year increase of 20.36%, and a net profit of 102 million yuan, reflecting a growth of 35.05% [34][72]. Financial Performance - The company's revenue is projected to grow from 613 million yuan in 2024 to 955 million yuan in 2026, with corresponding net profits expected to rise from 131 million yuan to 225 million yuan during the same period [4][38]. - The earnings per share (EPS) are forecasted to increase from 0.62 yuan in 2024 to 1.06 yuan in 2026, with price-to-earnings (P/E) ratios decreasing from 30.0 to 17.5 over the same timeframe [2][38]. - The gross margin for 2023 was reported at 64.45%, an increase of 0.96 percentage points year-on-year, driven by higher-value calibration testing products and digital platform revenue growth [35][48]. Market Position and Strategy - The company has established itself in the global market, with 90% of its products sold to developed regions such as the US, Europe, and Japan, and its main products priced 10% higher than international competitors [20][55]. - The company is actively expanding its MEMS pressure sensor project, with a production target of 300,000 sensor cores and 100,000 pressure sensors by 2023, which is expected to create a second growth curve for the company [36][88]. - The company is also focusing on enhancing its digital platform services, integrating testing technology with industrial IoT to provide comprehensive digital solutions for users [86].