Lettall Electronic(603629) Huaxin Securities·2024-04-25 05:30Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The traditional business of the company is under pressure, but the computing power leasing business has shown significant results [1] - The company reported a revenue of 1.893 billion yuan in 2023, a year-on-year decrease of 6.53%, primarily due to reduced sales orders and price cuts from major clients like Hisense and TCL [1][4] - The computing power leasing business began generating revenue in Q4 2023, with an income of 0.12 billion yuan and a gross margin of 44.03% [4] Summary by Sections Traditional Business Performance - The company's main business, which includes precision metal components for LCD TVs, experienced a decline in revenue, with specific segments like LCD TV metal components and electronic components seeing decreases of 3.89% and 9.97% respectively [1][4] - The gross margin for the main business segments also declined, with the average selling price of precision metal stamping components dropping by 19.18% [1] Computing Power Leasing Business - The company has established a professional computing power business team and has formed strategic partnerships with several key clients, including NVIDIA [4] - The computing power leasing business is expected to become a significant growth driver for revenue and profit as customer orders are executed [4] Financial Forecast - The company is projected to achieve revenues of 2.66 billion yuan, 3.164 billion yuan, and 3.762 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 0.61 yuan, 0.82 yuan, and 1.14 yuan [5] - The current stock price corresponds to a PE ratio of 39, 29, and 21 for the years 2024, 2025, and 2026 respectively, indicating a positive outlook for the company's traditional and new business lines [5]