Beijing JCZ Technology (SH:688291) Changjiang Securities·2024-05-09 00:01Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company is focusing on R&D and market expansion, which has led to initial performance pressure. In Q1 2024, the gross margin was 58.89%, up by 0.59 percentage points year-on-year. However, the net profit margin decreased by 11.71 percentage points to 13.76% due to increased expenses related to R&D, management, and sales [1][10] - New product categories and application scenarios are expected to gradually open up market opportunities. The company has seen a 42.46% year-on-year increase in sales revenue from its mirror control products in 2023, and it is actively expanding into high-end applications such as new energy battery, aerospace, and photovoltaic sectors [2][11] - The company is developing an intelligent control system and laser 3D printing control system, which are anticipated to enhance its core competitiveness and contribute to revenue growth in the long term [3] Financial Performance Summary - In 2023, the company reported total revenue of 220 million, a year-on-year increase of 11.00%, and a net profit of 42 million, up by 8.05%. For Q1 2024, revenue was 49 million, a 3.10% increase year-on-year, while net profit decreased by 43.59% to 7 million [10][11] - The company expects to achieve net profits of 49 million, 58 million, and 76 million for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 41, 35, and 27 [5][11]