T&S(300570) 长城证券·2024-04-07 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by over 15% in the next six months [31]. Core Views - The company is expected to benefit from the growing demand for AI computing power, which is anticipated to drive performance improvement [1][5]. - Despite a decline in revenue and net profit in 2023 due to weak overseas demand, the company is focusing on expanding its domestic market, which is expected to lead to a recovery in performance [1][3]. - The company has launched an employee stock ownership plan to enhance employee engagement and align interests between employees and shareholders, indicating confidence in future growth [20]. Financial Performance Summary - In 2023, the company achieved revenue of 885 million yuan, a decrease of 5.22% year-on-year, and a net profit of 155 million yuan, down 13.86% year-on-year [3][19]. - The gross margin for 2023 was 29.40%, a decline of 3.38 percentage points year-on-year, while the net margin was 17.15%, down 1.94 percentage points year-on-year [1]. - The company expects to see significant growth in net profit in the coming years, with projections of 306 million yuan in 2024, 364 million yuan in 2025, and 453 million yuan in 2026 [23]. Market Outlook - The global AI market is projected to grow at a CAGR of approximately 32.90% from 2022 to 2030, reaching a size of 1.85 trillion USD by 2030, which presents a significant opportunity for the company's optical device products [5]. - The demand for high-speed optical modules is expected to increase due to the rapid development of AI technologies and the introduction of new applications, positioning the company favorably in the market [5][23].