Cctech(300604) 中泰证券·2024-04-26 07:02Investment Rating - The report maintains a "Buy" rating for the company with a market price of 28.17 CNY per share [1]. Core Insights - The company experienced a significant decline in revenue and net profit in 2023 due to a sluggish market environment, but is expected to benefit from increased orders from major clients in 2024 [3][5]. - The company has made substantial investments in R&D, which accounted for 40.28% of revenue in 2023, indicating a commitment to innovation despite short-term profitability pressures [4][5]. - The establishment of the company's new production base is expected to enhance capacity and support revenue growth in the coming years [6]. Financial Performance Summary - 2023 Financials: Revenue was 1,775 million CNY, down 31.11% year-over-year; net profit was 45 million CNY, down 90.21% year-over-year [3]. - 2024 Projections: Expected revenue of 3,300 million CNY, with a significant rebound in net profit projected at 550 million CNY, reflecting a year-over-year growth of 1,117% [1][6]. - Earnings Per Share (EPS): Forecasted to increase from 0.07 CNY in 2023 to 0.88 CNY in 2024 [1][11]. Market and Strategic Positioning - The company is focusing on a major client strategy to drive the domestic production of digital testing machines, which are currently underrepresented in the market [5]. - The semiconductor market is anticipated to recover in 2024, which could positively impact the company's traditional business segments [5]. Capacity and Product Development - The company is progressing with the construction of its new production facility, which is expected to enhance its manufacturing capabilities and support future revenue growth [6]. - The acquisition of Longyi has expanded the company's product offerings and market reach, allowing for a comprehensive portfolio in sorting machines [6].