Appo(SH:688007) Guolian Securities·2024-04-29 09:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 23.52 yuan, based on a projected PE of 50 times for 2024 [6][19]. Core Insights - The company reported a revenue of 2.213 billion yuan in 2023, a decrease of 12.90% year-on-year, and a net profit attributable to shareholders of 103 million yuan, down 13.61% year-on-year [1][19]. - The company is gradually transforming its business model, focusing on improving profitability, particularly in the B-end business, while reducing reliance on the C-end business [2][19]. - The automotive sector is showing early signs of growth, contributing 48 million yuan in revenue in March 2024, indicating potential for improved profitability [1][3][19]. Financial Performance Summary - In Q1 2024, the company achieved a revenue of 445 million yuan, a decline of 3.04% year-on-year, but the net profit attributable to shareholders increased significantly by 226.21% to 45 million yuan [1][25]. - The gross profit margin for 2023 improved by 3.6 percentage points, primarily due to the increased proportion of cinema screening services [4][19]. - The company expects revenues for 2024 to reach 2.707 billion yuan, with a year-on-year growth rate of 22.31%, and net profits projected to be 218 million yuan, reflecting a growth rate of 110.91% [5][19]. Business Segment Analysis - The cinema screening service segment saw a year-on-year increase of 37% in 2023, while the professional display segment remained stable with a slight decline of 1% [1][19]. - The company is optimizing its C-end marketing expenses and adjusting its R&D personnel structure to better align with the needs of the automotive business [19]. Future Outlook - The company anticipates revenue growth of 22%, 18%, and 20% for the years 2024, 2025, and 2026, respectively, with corresponding net profit growth rates of 111%, 82%, and 59% [19]. - The report highlights the unique advantages of laser display technology and the potential for steady performance in the B-end business, suggesting a positive outlook for the company's future performance [19].