LUXSHARE-ICT(SZ:002475) Guoyuan Securities·2024-04-26 09:00Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company's revenue for 2023 reached 231.9 billion yuan, a year-on-year increase of 8.35%, with a net profit attributable to shareholders of 11 billion yuan, up 19.53% year-on-year. For Q1 2024, revenue was 52.4 billion yuan, a 4.93% increase year-on-year, and net profit was 2.5 billion yuan, up 22.45% year-on-year. The company expects a mid-year profit forecast of 5.227 to 5.445 billion yuan for 2024, indicating a growth of 20% to 25% [2][10][12]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 231.9 billion yuan, with a net profit of 11 billion yuan. The gross margin was 11.58%, a decrease of 0.61 percentage points year-on-year. For Q1 2024, the gross margin improved to 10.74% from 10.03% in Q1 2023. The company anticipates a net profit of 13.716 billion yuan and 17.580 billion yuan for 2024 and 2025, respectively, representing growth rates of 25% and 28% [2][4][17]. Business Segments - The PC business faced challenges in 2023 due to overall low shipments in the industry, but is expected to improve in 2024 with the potential upgrade of major clients' Mac series to M4 chips, enhancing AI capabilities. The automotive connectivity business saw a revenue growth of 50% in 2023, driven by the demand for electric vehicles and deepening collaborations with key clients [10][12]. - In the consumer electronics sector, the assembly revenue from AirPods and Watches remained stable compared to 2022. However, new product launches in 2024-2025 are expected to revitalize growth in the wearable segment. The company also anticipates significant contributions from modules and components due to increased market share and new product breakthroughs [12][13]. Market Outlook - The report predicts that the company's mobile assembly business will exceed 60 million units in 2024, contributing significantly to profitability. The Vision Pro headset is expected to generate revenue of approximately 2 to 2.2 billion yuan in 2023, with a projected demand of 300,000 units in North America [15][17][13]. Valuation - The target price for the company's stock is set at 38.2 yuan, based on a 20x price-to-earnings ratio. The report suggests that the stock price is expected to outperform the market index by more than 20% over the next six months [3][4][17].