Appo(SH:688007)2024-04-30 05:32Investment Rating - The report maintains a "Buy" rating for the company [18] Core Insights - The company reported a revenue of 2.213 billion yuan in 2023, a decrease of 12.9% year-on-year, and a net profit attributable to shareholders of 103 million yuan, down 13.6% year-on-year [4][18] - In Q1 2024, the company achieved a revenue of 445 million yuan, a decline of 3% year-on-year, but a significant increase in net profit attributable to shareholders to 45 million yuan, up 226% year-on-year [18] - The automotive optical business has entered a revenue contribution phase, with the first model, the AITO M9, officially launched in December 2023, and mass production starting in March 2024 [18] - The cinema business showed strong performance with a revenue of 3.69 billion yuan in 2023, a growth of 37.24% year-on-year, and Q1 2024 revenue of 1.53 billion yuan, up 21% year-on-year [18] Financial Summary - Total revenue (million yuan): 2023: 2,213; 2024Q1: 445; 2024E: 2,834; 2025E: 3,572; 2026E: 4,584 [4] - Net profit attributable to shareholders (million yuan): 2023: 103; 2024Q1: 45; 2024E: 221; 2025E: 301; 2026E: 400 [4] - Earnings per share (yuan/share): 2023: 0.22; 2024Q1: 0.10; 2024E: 0.48; 2025E: 0.65; 2026E: 0.86 [4] - Gross margin (%): 2023: 36.2; 2024Q1: 32.4; 2024E: 38.8; 2025E: 38.8; 2026E: 38.7 [4] - Return on equity (%): 2023: 3.7; 2024Q1: 1.6; 2024E: 7.3; 2025E: 9.3; 2026E: 11.2 [4] Business Performance - The company has made significant improvements in profitability, with a gross margin of 36.22% in 2023, an increase of 3.58 percentage points year-on-year [18] - The company has effectively controlled and optimized its operating expenses, resulting in a significant reduction in losses for its subsidiary, Peak Mi Technology [18] - The company is expected to continue expanding its automotive business and enhance its supply chain capabilities, with a slight adjustment in profit forecasts for 2024-2025 [18]