Shijia Photons(SH:688313) Minsheng Securities·2024-04-13 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2]. Core Insights - The company reported a revenue of 755 million yuan in 2023, a year-on-year decrease of 16.46%, and a net profit attributable to shareholders of -47.55 million yuan, down 173.97% year-on-year. However, in Q1 2024, the company achieved a revenue of 198 million yuan, a year-on-year increase of 32.85%, and a net profit of 8.44 million yuan, marking a return to profitability [1][8]. - The decline in 2023 performance was attributed to demand fluctuations and price pressures, alongside increased R&D expenses and higher impairment losses. The company’s gross margin for 2023 was 18.64%, down 6.57 percentage points year-on-year, but improved to 24.13% in Q1 2024 [1][8]. - The company is focusing on increasing R&D investments, with a R&D expense rate of 12.73% in 2023, amounting to 96.03 million yuan, a 19.51% increase year-on-year. Key developments include advancements in optical chips for data communication and telecommunications, which are expected to benefit from ongoing AI demand [1][8]. - The projected net profits for 2024, 2025, and 2026 are estimated at 45 million yuan, 82 million yuan, and 122 million yuan, respectively, with corresponding PE multiples of 99X, 54X, and 37X [1][8]. Financial Forecasts and Indicators - The company’s total revenue is forecasted to grow from 755 million yuan in 2023 to 1.44 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 20.68% [1][12]. - The net profit margin is expected to improve from -6.30% in 2023 to 8.45% in 2026, indicating a significant recovery in profitability [1][12]. - The gross margin is projected to increase from 18.64% in 2023 to 29.01% in 2026, reflecting improved operational efficiency [1][12].