Fuxin Technology(SH:688662) Tianfeng Securities·2024-05-06 07:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 46.15 CNY per share [12] Core Views - The company's semiconductor thermoelectric business showed strong performance, with semiconductor thermoelectric device sales reaching 90.99 million CNY, a year-on-year increase of 26.18% [1] - The company's semiconductor thermoelectric system sales reached 99.29 million CNY, a year-on-year increase of 5.27% [1] - The company's performance in Q1 2024 showed a recovery, with revenue increasing by 14.20% year-on-year and net profit attributable to the parent company increasing by 275.02% year-on-year [9] - The global optical module market is expected to grow significantly, with revenue projected to reach 22.3 billion USD by 2028, representing a CAGR of 12% from 2022 to 2028 [2] - The company has initiated the development of Micro TEC projects for 400G/800G high-speed optical modules and plans to increase R&D investment in 2024 [2] Financial Performance - The company's revenue in 2023 was 399.59 million CNY, a decrease of 20.29% year-on-year, while net profit attributable to the parent company was -12.78 million CNY, a decrease of 123.19% year-on-year [3][9] - Revenue is expected to grow to 507.88 million CNY in 2024E, 675.48 million CNY in 2025E, and 915.14 million CNY in 2026E, with growth rates of 27.10%, 33.00%, and 35.48% respectively [3] - Net profit attributable to the parent company is expected to recover to 62.24 million CNY in 2024E, 74.25 million CNY in 2025E, and 99.53 million CNY in 2026E [3] - The company's R&D expenses in 2023 were 31.55 million CNY, accounting for 7.89% of revenue, an increase of 1.12 percentage points year-on-year [10] Industry and Market Outlook - The global optical module market is expected to grow significantly, driven by the demand for high-speed optical modules such as 400G/800G, which will benefit the company's Micro TEC technology [2] - The company has already started supplying Micro TEC products for 5G optical module temperature control to several leading companies, with sales reaching 11.16 million CNY in 2023 [10] - The company is also exploring applications in the automotive sector, with sales of thermoelectric cooling devices reaching 2.36 million CNY in 2023 [10] Valuation and Financial Ratios - The company's P/E ratio is expected to be 37.29 in 2024E, 31.25 in 2025E, and 23.32 in 2026E [3] - The company's P/B ratio is expected to be 3.17 in 2024E, 3.00 in 2025E, and 2.79 in 2026E [3] - The company's EV/EBITDA ratio is expected to be 50.10 in 2024E, 45.71 in 2025E, and 34.70 in 2026E [3]