ACCELINK(SZ:002281) Guotai Junan Securities·2024-04-28 06:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price raised to 50.40 CNY from the previous 34.80 CNY [1][2]. Core Views - The company is expected to benefit from a surge in demand driven by AI and the domestic 400G market, with a significant increase in profitability forecasted for 2024 [1][2]. - The first quarter performance was below expectations due to increased costs, but the overall annual performance aligns with market forecasts [1][2]. Summary by Sections Financial Performance - The company reported a revenue of 6,061 million CNY in 2023, down 12.31% year-on-year, while the net profit attributable to shareholders was 619 million CNY, reflecting a 1.8% increase [1][2]. - The earnings per share (EPS) for 2024 is projected at 1.20 CNY, with subsequent years showing growth to 1.52 CNY and 1.90 CNY [1][2]. Profitability and Valuation Metrics - The report indicates an expected increase in net profit margins, with a projected net profit of 950 million CNY for 2024, representing a 53% increase [1][2]. - The company's price-to-earnings (PE) ratio for 2024 is estimated at 31.70, which is lower than the industry average of 44.80 [5]. Market Dynamics - The report highlights that domestic internet companies are significantly investing in AI, which is expected to drive demand for 400G optical modules, positioning the company as a key beneficiary [1][2]. - The anticipated growth in AI-driven demand is expected to catalyze a rapid increase in sales for the company, as it transitions from 100G/200G to 400G products [1][2].