CFMEE(SH:688630) Guotou Securities·2024-04-28 09:00Investment Rating - The report maintains a "Buy-A" rating for the company with a 6-month target price of 75.58 CNY, compared to the current stock price of 63.01 CNY as of April 26, 2024 [3][28]. Core Insights - The company has shown continuous revenue growth, with 2023 revenue reaching 830 million CNY, a year-over-year increase of 27%, and a net profit of 180 million CNY, up 31% year-over-year. In Q1 2024, revenue was 200 million CNY, growing 26% year-over-year, with a net profit of 39.76 million CNY, an 18.7% increase year-over-year [5]. - The PCB segment generated 590 million CNY in revenue in 2023, an 11.94% increase year-over-year, with a gross margin of 35.4%. The growth is attributed to accelerated overseas market expansion, advancements in high-end PCB technology, and deepening partnerships with quality clients [5]. - The company's semiconductor business achieved 190 million CNY in revenue in 2023, a remarkable 97% year-over-year growth, with a gross margin of 57.6%. The business is diversified across various sectors, including IC, MEMS, and advanced packaging, indicating strong long-term growth potential [14]. Financial Summary - The company is projected to achieve revenues of 1.11 billion CNY in 2024, 1.53 billion CNY in 2025, and 2.03 billion CNY in 2026, with year-over-year growth rates of 34.0%, 37.5%, and 33.1% respectively. Net profits are expected to reach 260 million CNY in 2024, 360 million CNY in 2025, and 510 million CNY in 2026, with growth rates of 45.8%, 37.2%, and 43.5% respectively [28]. - The company’s earnings per share (EPS) are projected to be 1.99 CNY in 2024, 2.73 CNY in 2025, and 3.91 CNY in 2026, reflecting a strong upward trend in profitability [9][28]. - The price-to-earnings (PE) ratio is expected to decrease from 60.6 in 2022 to 31.7 in 2024, indicating improved valuation as earnings grow [9][28].