MAYAIR(SH:688376) SINOLINK SECURITIES·2024-04-26 06:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of RMB 44.90 based on the current market price of RMB 35.02 [4][10]. Core Insights - The company achieved a revenue of RMB 1.51 billion in 2023, representing a year-on-year growth of 22.7%, and a net profit attributable to shareholders of RMB 173 million, up 40.8% year-on-year [10][20]. - The first quarter of 2024 saw a revenue of RMB 270 million, with a slight year-on-year increase of 2.1%, and a net profit of RMB 40 million, reflecting a 5.4% increase [10][20]. - The company is experiencing a significant increase in the proportion of consumables in its revenue, which reached 30% in 2023, contributing to improved cash flow quality [20]. - The overseas business is expanding rapidly, with foreign revenue growing by 30.8% to RMB 170 million in 2023, driven by higher product prices and increased sales volume [20]. - The company is increasing its R&D investment, which reached RMB 70.11 million in 2023, a 35.6% increase, to meet the higher cleanliness requirements in the semiconductor sector [20]. Summary by Sections Financial Performance - Revenue projections for 2024 to 2026 are RMB 1.92 billion, RMB 2.45 billion, and RMB 3.03 billion, respectively, with growth rates of 27.6%, 27.6%, and 23.5% [23]. - Net profit forecasts for the same period are RMB 227 million, RMB 301 million, and RMB 399 million, with growth rates of 31.1%, 32.7%, and 32.5% [23]. - The diluted earnings per share (EPS) are projected to be RMB 1.69, RMB 2.24, and RMB 2.97 for 2024, 2025, and 2026, respectively [22][23]. Market Position - The company is positioned as a leader in cleanroom equipment, with a focus on consumables that enhance revenue stability and cash flow [20]. - The report highlights the company's strategic expansion into overseas markets, particularly in Malaysia, to capitalize on industry shifts [20]. Valuation Metrics - The company is expected to have a price-to-earnings (P/E) ratio of 19, 14, and 11 for the years 2024, 2025, and 2026, respectively, indicating a favorable valuation trend [22][23]. - Return on equity (ROE) is projected to improve from 10.6% in 2023 to 15.8% by 2026, reflecting enhanced profitability [22][23].