Bojay(SZ:002975) Huaan Securities·2024-04-29 13:30Investment Rating - Buy (Maintained) [4] Core Views - The company faced performance pressure in 2023 but turned profitable in Q1 2024 [4] - Revenue in 2023 was RMB 905 million, down 25.06% YoY, with a net loss of RMB -57.23 million, down 128.31% YoY [4] - In Q1 2024, revenue increased by 41.51% YoY to RMB 275 million, with net profit of RMB 10.63 million, up 200.73% YoY [4] - The company focuses on industrial automation and intelligent equipment in the smart manufacturing sector, serving industries like consumer electronics, big data cloud services, new energy vehicles, and semiconductors [4] - The company plans to acquire Hardinge China for RMB 900 million, aiming to expand into the industrial machine tool sector [4] Financial Performance - Revenue for 2023 was RMB 905.4 million, with a YoY decline of 25.6% [6] - Revenue is expected to grow to RMB 1,358 million in 2024, RMB 1,584.4 million in 2025, and RMB 1,810.7 million in 2026 [6] - Net profit for 2024 is forecasted at RMB 115 million, with a YoY growth of 301.0% [6] - Gross margin is expected to be 46.2% in 2024, 45.3% in 2025, and 44.4% in 2026 [6] - ROE is projected to improve from 6.6% in 2024 to 9.4% in 2026 [6] Business Strategy - The company provides multi-domain one-stop testing solutions, serving high-quality clients such as Apple, Meta, Microsoft, Tesla, Google, BYD, Huawei, and DJI [4] - The acquisition of Hardinge China is expected to create a second growth engine for the company [4] Valuation and Forecast - The company's current PE ratio is 36x for 2024, 26x for 2025, and 22x for 2026 [4] - EPS is forecasted to be RMB 0.83 in 2024, RMB 1.16 in 2025, and RMB 1.35 in 2026 [4] - The company's EV/EBITDA is expected to be 21.36x in 2024, 16.14x in 2025, and 13.87x in 2026 [6]