YaGuang Technology(300123) 东吴证券·2024-04-25 10:00Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next 6 to 12 months [2][25]. Core Insights - The company achieved a revenue of 1.589 billion yuan in 2023, a decrease of 5.79% year-on-year, while the net profit attributable to shareholders was a loss of 283 million yuan, but this represented a significant improvement of 76.41% compared to the previous year [8][2]. - The company is positioned in the military electronics sector, which is expected to benefit from increased defense spending in China, projected to reach approximately 1.55 trillion yuan in 2023, a year-on-year increase of 7.2% [2][9]. - The company plans to focus on military electronics and has seen a surge in orders for its core products, including microwave circuits and semiconductor chips, which are expected to drive future revenue growth [9][19]. Financial Forecasts - The company’s total revenue is projected to grow to 1.8 billion yuan in 2024, with a compound annual growth rate (CAGR) of 13.30% from 2023 to 2026 [1]. - The net profit forecast for 2024 is adjusted to 21 million yuan, with further increases expected in subsequent years, reaching 112 million yuan by 2026 [2][1]. - The report indicates a significant recovery in profitability, with net profit growth rates projected at 107.33% for 2025 and 58.88% for 2026 [1][14]. Industry Context - The military electronics industry is experiencing a historic growth phase, driven by increasing defense budgets and the need for advanced military technology in response to complex international security situations [1][9]. - The company is well-positioned to capitalize on these trends, with a focus on expanding its market share in military electronics and related sectors [9][19].