Appo(688007) 华创证券·2024-05-17 03:32Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 25 yuan [1][27] Core Views - The company's cinema and professional display B2B businesses are steadily recovering, driving profitability improvement [1] - The rapid development of the automotive core components business is expected to contribute to long-term growth [1] - The company's C-end business is under short-term pressure, leading to adjustments in net profit forecasts for 2024 and 2025 [1] Business Performance - In 2023, the company achieved revenue of 2.21 billion yuan, a year-on-year decrease of 12.9% [1][24] - The cinema business grew by 37% year-on-year, with ALPD® laser light sources installed in over 29,500 domestic units [1] - The professional display business generated revenue of 430 million yuan, focusing on high-brightness laser products [1] - The automotive core components business secured 6 high-quality projects, with the first project, the AITO M9, contributing 48.027 million yuan in Q1 2024 [1] Financial Performance - In Q1 2024, the company achieved a net profit attributable to shareholders of 45 million yuan, a year-on-year increase of 226.2% [1][24] - The net profit margin in Q1 2024 was 10%, a year-on-year increase of 7 percentage points [1] - The company's sales, management, R&D, and financial expense ratios decreased by 3.2, 0.4, 1.7, and 1.4 percentage points respectively, with overall expense ratio down by 6.7 percentage points [1] Future Outlook - The company's automotive optical business is expected to contribute significantly to future revenue growth, with the AITO M9 project entering a dense delivery period [1] - The company launched the world's first ALL-in-ONE laser headlight at the Beijing Auto Show, integrating multiple functions such as ADB, color temperature adjustment, and ground information display [1] - The company's net profit forecasts for 2024, 2025, and 2026 are adjusted to 140 million, 220 million, and 290 million yuan respectively, with corresponding P/E ratios of 59, 38, and 28 times [1][27] Financial Indicators - The company's total market capitalization is 8.244 billion yuan, with a total share capital of 462.6054 million shares [3] - The company's asset-liability ratio is 32.7%, with a net asset per share of 6.11 yuan [3] - The company's 12-month high and low stock prices are 30.99 yuan and 15.29 yuan respectively [3]