MTC(002429) 国信证券·2024-04-21 02:00Investment Rating - The investment rating for the company is "Buy" [1][4][12] Core Views - The company's profitability has improved, with a 38% year-on-year increase in net profit attributable to shareholders in 2023. Revenue reached 17.167 billion yuan, up 14.2% year-on-year, and the gross margin was 18.83%, an increase of 1.82 percentage points [1][2] - The company ranks third globally in television ODM shipments, with a 25% year-on-year increase in shipments, totaling approximately 10.5 million units in 2023. The growth is primarily driven by overseas orders, particularly in North America, with expansion into Europe, Southeast Asia, and South America [1][2] - The company leads the industry in LED chip production and sales, optimizing its product structure to enhance profitability. By the end of 2023, the company ranked second in GaN chip capacity and first in production and sales across the industry [1][2] - The company is expanding its COB display production, with revenue from COB applications reaching 541 million yuan in 2023. The monthly production capacity for COB displays is expected to grow from 10,000 square meters in December 2023 to 16,000 square meters by April 2024 [1][2] Financial Forecasts - The company forecasts net profits attributable to shareholders of 2.199 billion yuan, 2.690 billion yuan, and 2.930 billion yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 11.0, 9.0, and 8.3 [1][2][10] - Revenue is projected to grow to 21.682 billion yuan in 2024, 26.199 billion yuan in 2025, and 28.241 billion yuan in 2026, reflecting growth rates of 26.3%, 20.8%, and 7.8% respectively [2][10] Key Financial Metrics - In 2023, the company's EBIT margin was 11.0%, and the return on equity (ROE) was 10.7% [2][10] - The company’s gross margin is expected to stabilize around 20% by 2026, indicating a focus on high-value products [10] - The company has maintained a strong cash position, with cash and cash equivalents at 4.092 billion yuan in 2023, projected to increase to 5.978 billion yuan by 2026 [10]