Avary Holding(SZ:002938)2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expectation for the stock to outperform the benchmark index by over 20% in the next 6-12 months [3][13]. Core Views - The company faced performance pressure in 2023 due to industry cyclicality, but signs of recovery were noted in Q4 2023. The overall revenue for 2023 was 32.066 billion RMB, a decrease of 11.45% year-on-year, with a net profit of 3.287 billion RMB, down 34.41% year-on-year. However, Q4 2023 showed a revenue increase of 1.67% year-on-year and a 30.15% quarter-on-quarter increase [3][4]. - The consumer electronics industry is experiencing cyclical fluctuations, but innovation continues to drive growth, particularly in smartphones and AI applications. The company is well-positioned to benefit from the recovery and innovation in the sector [3][4]. - The company is actively expanding into high-growth markets such as AI and automotive applications, with significant revenue growth in automotive and server products, achieving a 71.45% year-on-year increase in automotive product revenue [3][4]. Financial Summary - The company's revenue for 2023 was 32.066 billion RMB, with projections of 37.631 billion RMB for 2024, 42.812 billion RMB for 2025, and 48.845 billion RMB for 2026, reflecting a recovery trend [4][10]. - The net profit for 2023 was 3.287 billion RMB, with forecasts of 4.370 billion RMB for 2024, 4.899 billion RMB for 2025, and 5.437 billion RMB for 2026, indicating a positive growth trajectory [4][10]. - The company's EBITDA for 2023 was 6.097 billion RMB, with expected increases to 7.769 billion RMB in 2024 and 8.700 billion RMB in 2025 [4][10]. - The projected PE ratios for 2024, 2025, and 2026 are 12.3, 11.0, and 9.9 respectively, suggesting an attractive valuation as earnings recover [3][4].