Lianovation(SH:600363) Soochow Securities·2024-04-28 23:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% in the next 6 months [5][7]. Core Insights - The company's traditional business has impacted its 2023 performance, with a revenue of 3.24 billion yuan, a slight decrease of 2% year-on-year, and a net profit of 339 million yuan, an increase of 27% year-on-year. The core profit growth was affected by losses in its backlight source subsidiary and a slowdown in profit growth from its core investment subsidiary [1][7]. - The superconducting business has turned profitable for the first time, generating revenue of 75.4 million yuan and a net profit of 6.8 million yuan in 2023. The company is positioned as a leader in the domestic high-temperature superconducting application field, with several projects expected to contribute to profit growth in 2024 [2]. - The high-energy laser segment has opened up overseas sales opportunities, achieving revenue of 166 million yuan in 2023 and a net profit of 36 million yuan. The company has received export licenses for its laser countermeasure systems, which could drive new revenue growth [3]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of 3.24 billion yuan, a decrease of 2.24% year-on-year, and a net profit of 339 million yuan, an increase of 26.89% year-on-year. The earnings per share (EPS) for 2023 was 0.75 yuan [5][7]. - The forecast for 2024 estimates revenue growth to 3.63 billion yuan, with a projected net profit of 501 million yuan, reflecting a significant increase of 47.58% year-on-year [5][7]. Business Segments - The superconducting business is expected to accelerate profit contributions, with ongoing projects in induction heating equipment, superconducting magnets for photovoltaic single crystal furnaces, and nuclear fusion engineering equipment [2]. - The high-energy laser segment is anticipated to become a new growth driver, with successful export orders already in place [3]. Valuation Metrics - The current price-to-earnings (P/E) ratio is projected to be 27 for 2024, decreasing to 17.4 by 2026, indicating a favorable valuation as the company transitions to higher growth segments [5][7].