Absen(SZ:300389) Great Wall Securities·2024-05-16 05:32Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index within the next six months [38]. Core Insights - The company achieved a revenue of 4.006 billion yuan in 2023, representing a year-on-year growth of 43.29%. The net profit attributable to shareholders was 316 million yuan, up 55.53% year-on-year [2][19]. - In Q1 2024, the company reported a revenue of 864 million yuan, a year-on-year increase of 21.87%, but a quarter-on-quarter decline of 41.15%. The net profit attributable to shareholders was 71 million yuan, down 10.28% year-on-year and 26.31% quarter-on-quarter [2]. - The company has set ambitious targets, aiming for signed contracts of 8 billion yuan in 2024 and 10 billion yuan in 2025, reflecting a strong outlook for the LED display industry and the new energy storage business [21]. Financial Performance - The company’s revenue is projected to grow from 5.734 billion yuan in 2024 to 10.059 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 25.3% [19]. - The net profit attributable to shareholders is expected to increase from 434 million yuan in 2024 to 804 million yuan in 2026, indicating a robust growth trajectory [21]. - The company’s gross margin for 2023 was 29.57%, with a slight decrease of 1.80 percentage points year-on-year, while the net margin improved by 0.44 percentage points to 7.72% [13]. Market Trends - The global LED display market is recovering, with a market size of 7.564 billion USD in 2023, reflecting an 8% year-on-year increase. The company is well-positioned to benefit from this trend [20]. - The company has invested approximately 400 million yuan in R&D from 2021 to 2023, focusing on technologies such as Micro LED and virtual shooting, which have significantly contributed to its product offerings and sales growth [32]. Business Development - The company’s domestic signed contracts grew by approximately 93% year-on-year, reaching 25 billion yuan in 2023, while international contracts increased by 26% to 28 billion yuan [30]. - The company has launched 55 new products in 2023, with sales of Micro LED products increasing by over 200% year-on-year, showcasing its innovation capabilities [32].