YaGuang Technology(300123) 东吴证券·2024-04-25 11:00Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a positive outlook for the stock over the next six months [6][8]. Core Insights - The company reported 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 showed a significant increase of 76.41% compared to the previous year [1][6]. - The military industry is experiencing robust growth, particularly in the drone sector, driven by increased demand for military equipment due to the current international situation. This trend is expected to benefit the company as it continues to develop its military electronics business [2][6]. - The company is focusing on expanding its military electronics segment, which currently accounts for 70% of total revenue, with strong demand for microwave circuits and semiconductor chips [7][8]. Financial Performance Summary - In 2023, the company achieved total revenue of 1.589 billion yuan, with a year-on-year decline of 5.79%. The operating costs were 1.731 billion yuan, down 9.98% year-on-year, leading to a net profit loss of 283 million yuan, despite a 76.41% increase in net profit attributable to shareholders [6][8]. - The company’s earnings per share (EPS) for 2023 was -0.28 yuan, with projected EPS of 0.02 yuan for 2024 and 0.07 yuan for 2025 [6][8]. - The company’s debt-to-asset ratio stands at 57.02%, with total assets of 6.264 billion yuan and total liabilities of 3.571 billion yuan [4][20]. Future Outlook - The company is expected to benefit from the increasing defense budget in China, which is projected to reach approximately 1.55 trillion yuan in 2023, reflecting a year-on-year growth of 7.2% [6][8]. - The forecast for net profit attributable to shareholders is adjusted to 21 million yuan for 2024 and 71 million yuan for 2025, with a new estimate of 112 million yuan for 2026 [8].