Appo(SH:688007) GF SECURITIES·2024-04-29 02:33Investment Rating - The report assigns a "Buy" rating, indicating an expectation that the stock will outperform the market by more than 10% over the next 12 months [6]. Core Insights - The report highlights that the company's revenue is under pressure, with a year-on-year decline of 12.9% in 2023, while the net profit attributable to the parent company is projected to recover significantly in 2024, with an expected growth rate of 70.1% [22][32]. - The gross profit margin is expected to improve, reaching 36.2% in 2023, up from 32.6% in 2022, indicating better cost management and operational efficiency [22][32]. - The automotive business is beginning to contribute to revenue, with the company entering mass production phases for its optical products in vehicles, which is expected to enhance overall performance [22][32]. Financial Summary - Revenue for 2023 is reported at 2,213 million, down from 2,541 million in 2022, with a projected recovery to 2,315 million in 2024 [22][32]. - The net profit attributable to the parent company is expected to rise from 103 million in 2023 to 176 million in 2024, reflecting a significant turnaround [22][32]. - The report anticipates an EBITDA of 192 million in 2023, with projections of 348 million in 2024, indicating a strong recovery trajectory [22][32]. Valuation Metrics - The report estimates a reasonable value per share of 22.77 yuan, based on a projected P/E ratio of 51.57 for 2024 [22][32]. - The current price of the stock is noted at 19.57 yuan, suggesting potential upside based on the valuation [22][32].