Cctech(SZ:300604) Huachuang Securities·2024-04-24 23:31Investment Rating - The report assigns a "Recommendation" rating to the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [5][16]. Core Views - The company experienced a significant decline in performance during the industry downturn, with 2023 revenue at 1.775 billion yuan, down 31.11% year-on-year, and a net profit of 45 million yuan, down 90.21% year-on-year [2][3]. - In Q1 2024, the company reported revenue of 559 million yuan, an increase of 74.81% year-on-year, but a slight decrease of 1.18% quarter-on-quarter [2]. - The company is focusing on high-end market opportunities and has increased R&D investment, with 2023 R&D expenses amounting to 788 million yuan, representing 44.38% of revenue [2][3]. - A stock option incentive plan was announced, covering 18 million shares, which reflects long-term confidence in the company's development [2]. Financial Summary - For 2023, total revenue was 1.775 billion yuan, with a year-on-year decline of 31.1%, and net profit was 45 million yuan, down 90.2% [3]. - The forecast for 2024-2026 projects revenues of 3.0 billion yuan, 3.803 billion yuan, and 4.564 billion yuan, respectively, with expected growth rates of 69.0%, 26.8%, and 20.0% [3][9]. - The projected net profit for 2024-2026 is 474 million yuan, 677 million yuan, and 865 million yuan, with growth rates of 950.5%, 42.7%, and 27.8% respectively [3][9]. - The company’s target price is set at 34.1 yuan, based on a 45x PE ratio for 2024 [5].