BROADEX(SZ:300548) Guolian Securities·2024-05-10 08:00Investment Rating - The investment rating for the company is "Buy" based on a target price that is expected to exceed the market index by more than 20% [7]. Core Insights - The company has a strong focus on R&D, with a R&D expense ratio of 9.12% in Q1 2024, reflecting a year-on-year increase of 4.12 percentage points [9]. - The operating cash flow has significantly improved, reaching a net amount of 48 million yuan in Q1 2024, which is a 33.33% increase compared to the previous quarter [9]. - The company has set ambitious performance targets in its stock incentive plan, aiming for a net profit of at least 160% of the previous year's profit for 2024 [18]. Financial Performance Summary - In Q1 2024, the company reported revenue of 313 million yuan, a year-on-year decrease of 38.46%, and a net profit attributable to the parent company of 27,800 yuan, down 99.93% [2]. - The projected revenues for 2024-2026 are 2.094 billion, 2.585 billion, and 3.196 billion yuan, with year-on-year growth rates of 25.01%, 23.44%, and 23.62% respectively [4]. - The net profit attributable to the parent company for the same period is expected to be 163 million, 189 million, and 224 million yuan, with growth rates of 100.28%, 15.89%, and 18.20% respectively [4]. - The earnings per share (EPS) are projected to be 0.57, 0.66, and 0.78 yuan for 2024, 2025, and 2026, respectively, indicating a compound annual growth rate (CAGR) of 39.99% over three years [4]. Stock Performance - The company's stock price has shown relative performance against the CSI 300 index, with fluctuations of -40%, -3%, 33%, and 70% from May 2023 to May 2024 [5]. Valuation Metrics - The company has a current market capitalization of approximately 4.999 billion yuan, with a price-to-earnings (P/E) ratio of 39.6 for 2024 [11][21]. - The projected price-to-book (P/B) ratio is 3.7 for 2024, indicating a premium valuation compared to its book value [21].