AFR(SZ:300620) Minsheng Securities·2024-04-03 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Views - The company experienced short-term performance pressure due to demand fluctuations, but the future development of lithium niobate and lidar businesses is promising [2]. - In 2023, the company achieved a revenue of 710 million yuan, a year-on-year increase of 10.50%, while the net profit attributable to shareholders decreased by 49.38% to 59.64 million yuan [2][4]. - The company is focusing on enhancing its product offerings in optical interconnects and lithium niobate, with significant investments in R&D [2]. - The lidar business is identified as a key growth area, with plans to strengthen collaboration with subsidiaries to enhance competitive strength in the automotive lidar market [2]. Financial Performance Summary - Revenue for 2023 was 710 million yuan, with a growth rate of 10.50% [4]. - The net profit attributable to shareholders was 59.64 million yuan, reflecting a decline of 49.38% [4]. - The company’s R&D expenses increased by 23.99% year-on-year to 12.4 million yuan, impacting profitability [2]. - The projected net profits for 2024, 2025, and 2026 are 90 million yuan, 135 million yuan, and 205 million yuan, respectively, with corresponding PE multiples of 128, 85, and 56 [2][5].