AFR(SZ:300620) Tianfeng Securities·2024-04-06 16:00Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 45.98 CNY, reflecting a potential upside from the current price [4]. Core Views - The acquisition of 52% stake in Bai'an Industrial is expected to enhance the company's strategic layout and competitive strength in the automotive lidar light source module sector, which has significant growth potential [10]. - The company forecasts a rebound in net profit for 2024-2026, with expected growth rates of 63%, 39%, and 29% respectively, leading to a projected PE ratio of 118x, 85x, and 66x for those years [10]. Financial Summary - The company reported a revenue of 709.90 million CNY in 2023, a year-on-year increase of 10.50%, while the net profit decreased by 49% to 59.64 million CNY [20]. - The gross margin for the fiber laser device segment decreased by 5 percentage points despite a revenue increase of 24% [20]. - The company plans to increase R&D investment in next-generation thin-film lithium niobate modulators, which are expected to gain market share as the industry transitions to higher bandwidth optical modules [21][23]. Financial Projections - Revenue projections for 2024-2026 are 863.04 million CNY, 1,017.28 million CNY, and 1,172.52 million CNY, with corresponding growth rates of 21.57%, 17.87%, and 15.26% [24]. - The projected net profit for 2024-2026 is 97.21 million CNY, 135.06 million CNY, and 174.71 million CNY, with growth rates of 63%, 38.94%, and 29.36% respectively [24]. Key Financial Ratios - The company’s current assets totaled 984.55 million CNY in 2023, with a total asset value of 2,000.72 million CNY [22]. - The debt-to-asset ratio stands at 14.86%, indicating a relatively low level of financial leverage [4].