SOKAN(SH:688157) Huachuang Securities·2024-05-16 05:02Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 42.55 CNY per share, based on a projected P/E ratio of 37x for 2024 [14][40]. Core Insights - The company reported a revenue of 590 million CNY for 2023, representing a year-on-year increase of 18.17%. The net profit attributable to the parent company was 81 million CNY, a slight decrease of 1.45% year-on-year. The fourth quarter of 2023 saw a revenue of 175 million CNY, up 57.14% year-on-year, and a net profit of 28 million CNY, up 49.8% year-on-year [1]. - In Q1 2024, the company achieved a revenue of 135 million CNY, a year-on-year increase of 43.53%, and a net profit of 12 million CNY, a significant increase of 298.31% year-on-year [1]. - The 3C segment (consumer electronics) showed strong recovery in 2023, with revenue of 479 million CNY, a year-on-year increase of 12.26%. The automotive segment also performed well, with a revenue of 99 million CNY, up 47.23% year-on-year [14]. - The company is focusing on R&D, with a R&D expense ratio of 16.07% in Q1 2024, indicating a commitment to innovation and new product development [14]. Financial Performance Summary - For 2023, the company reported total revenue of 590 million CNY and a net profit of 81 million CNY. The projected revenues for 2024, 2025, and 2026 are 818 million CNY, 1.061 billion CNY, and 1.385 billion CNY, respectively, with year-on-year growth rates of 38.6%, 29.8%, and 30.5% [41]. - The net profit for the same years is projected to be 129 million CNY, 150 million CNY, and 207 million CNY, with growth rates of 59.0%, 16.2%, and 37.8% respectively [41]. - The company’s P/E ratios are projected to decrease from 46 in 2023 to 29 in 2024, 25 in 2025, and 18 in 2026, indicating an improving valuation as earnings grow [41].