Yangtze Optical Electronic (SH:688143) Minsheng Securities·2024-04-23 01:01Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on the recovery of traditional business and the acceleration of new business layouts [5][6]. Core Insights - In Q1 2024, the company achieved a revenue of 57.05 million yuan, representing a year-over-year growth of 147.8%. The net profit attributable to shareholders was 6.53 million yuan, a significant turnaround from a loss of 8.46 million yuan in Q1 2023 [5]. - The company has shown a notable improvement in demand, with a significant recovery in orders since Q4 2023. The gross margin increased by 3.5 percentage points to 47.1%, and the net margin improved by 47.8 percentage points to 11.2% [5]. - The company plans to raise up to 300 million yuan through a private placement to support its main business and supplement working capital. It has also made significant progress in R&D, expanding its product offerings in the optical fiber industry [5]. Financial Summary - Revenue projections for 2024, 2025, and 2026 are 317 million yuan, 499 million yuan, and 679 million yuan, respectively, with growth rates of 44.0%, 57.4%, and 36.0% [2][5]. - The net profit attributable to shareholders is expected to reach 86 million yuan in 2024, 150 million yuan in 2025, and 200 million yuan in 2026, with growth rates of 455.8%, 73.5%, and 33.2% [2][5]. - The company's PE ratios for 2024, 2025, and 2026 are projected to be 29, 16, and 12, respectively, indicating a favorable valuation trend as earnings grow [2][5].