NOVEL OPTICS(SH:603297) Orient Securities·2024-05-03 07:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 93.06 CNY based on a 33x PE valuation for 2024 [8][10][12]. Core Insights - The company achieved a revenue of 854 million CNY in 2023, a slight increase of 3% year-on-year, marking a historical high despite challenges in the barcode business due to overseas inventory destocking [3][7]. - The company's net profit attributable to the parent company for 2023 was 235 million CNY, a decrease of 15.6% year-on-year, with a gross margin decline of 3.7 percentage points to 38.4% [3][10]. - The company is positioned as a domestic leader in niche markets such as scientific instruments, laser radar, and medical optics, which are expected to drive long-term growth [3][10]. Financial Forecast - The forecasted earnings per share (EPS) for 2024, 2025, and 2026 are 2.82 CNY, 3.61 CNY, and 4.61 CNY respectively, with adjustments made to revenue and gross margin predictions [8][10]. - Revenue is projected to grow significantly from 1,190 million CNY in 2024 to 1,984 million CNY in 2026, reflecting a compound annual growth rate (CAGR) of 26.9% [2][10]. - The company's operating profit is expected to recover to 349 million CNY in 2024, with further increases to 571 million CNY by 2026 [2][10]. Business Segments - The high-end microscope segment saw a revenue increase of 16% in 2023, with the self-owned NEXCOPE series achieving nearly 1.4 million CNY in sales, indicating a significant shift towards domestic production [3][10]. - The medical optics segment reported a revenue of 63 million CNY in 2023, achieving over 50% growth for two consecutive years, driven by partnerships with leading domestic and international companies [3][10]. - The automotive laser radar business experienced over 50% growth, with sales exceeding 90 million CNY, indicating a transition from small-scale to large-scale production [3][10].