LY iTECH(SZ:002600) EBSCN·2024-04-26 11:02Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - Continuous share buybacks have boosted market confidence, with the company repurchasing 63.62 million shares for a total of 300 million RMB from 2022 to March 1, 2024. A new buyback plan was approved on March 8, 2024, with a total amount between 50 million and 100 million RMB [1]. - The company plans to issue convertible bonds to optimize its product structure and enhance profitability, aiming to raise up to 2.137 billion RMB for various manufacturing projects [1]. - The company is deepening its focus on the consumer electronics sector while expanding into the new energy vehicle market, achieving a 166.32% growth in automotive business in 2022 and a 72.46% increase in revenue in the first half of 2023 [1]. Financial Summary - Revenue is projected to grow from 37.24 billion RMB in 2023 to 53.42 billion RMB in 2025, with a compound annual growth rate (CAGR) of approximately 20.53% [3]. - Net profit is expected to increase from 2.23 billion RMB in 2023 to 3.58 billion RMB in 2025, reflecting a growth rate of 36% in 2025 [3]. - The company's earnings per share (EPS) is forecasted to rise from 0.32 RMB in 2023 to 0.51 RMB in 2025 [3]. Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 16x in 2023 to 10x in 2025, indicating an attractive valuation as earnings grow [2][3]. - The return on equity (ROE) is expected to improve from 12% in 2023 to 15.6% in 2025, showcasing enhanced profitability [3][5]. Market Position - The company is recognized as one of the few precision manufacturing firms covering the entire industry chain, including materials, precision components, and assembly, with applications in consumer electronics, new energy vehicles, and clean energy [2][5].