ArcSoft(SH:688088) Guotai Junan Securities·2024-04-22 02:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 38.10 CNY [14][15]. Core Insights - The company is expected to sustain high growth in its intelligent driving business while expanding its commercial photography segment focused on video generation [14]. - The revenue for 2023 reached 670 million CNY, reflecting a year-on-year growth of 26% [15]. - The report has adjusted the earnings forecast for 2024-2026, with expected EPS of 0.36 CNY in 2024, 0.48 CNY in 2025, and 0.60 CNY in 2026 [14][15]. Financial Summary - The company achieved a net profit of 146 million CNY in 2023, a 65% increase compared to the previous year [15]. - The operating profit margin is projected to improve from 14.1% in 2023 to 16.8% in 2024 [15]. - The net asset return rate is expected to rise from 5.4% in 2023 to 7.1% in 2024 [15]. Market Performance - The stock price has fluctuated between 22.21 CNY and 51.45 CNY over the past 52 weeks, with a current market capitalization of 11,133 million CNY [2][14]. - The report indicates that the company's stock has shown a relative performance that is expected to outperform the market index [11]. Business Outlook - The intelligent driving segment is anticipated to leverage compliance capabilities to assist domestic automakers in expanding into international markets [14]. - The commercial photography business is set to focus on rapid product launches and updates, particularly in the AIGC (Artificial Intelligence Generated Content) space [14].