JPT(SH:688025) Guotai Junan Securities·2024-05-24 06:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 54.18 CNY, down from the previous forecast of 66.76 CNY, while the current price is 45.80 CNY [13][20]. Core Insights - The company's lithium battery laser processing business is experiencing rapid growth, achieving a net profit of 86 million CNY in 2023, representing a year-on-year increase of 58.2%, which aligns with expectations. However, the demand for equipment is affected by slower-than-expected capacity increases in perovskite production [22]. - The revenue recognition pace is slower, impacting Q1 2024 performance, but significant revenue is expected to be recognized in Q2 and Q3 2024. The company has strong order acquisition capabilities, particularly in high-end laser equipment for the lithium battery sector, with a projected revenue growth of over 50% in 2023 [22][23]. - The MOPA laser's high gross margin has improved the overall gross margin to 41.11%, up by 5.48 percentage points year-on-year, offsetting declines in other equipment margins [22]. - The company is expected to benefit from the release of equipment demand due to the iteration of AR products and the domestic transfer of production lines by key clients [22]. Financial Summary - The company's financial performance is projected as follows: - Revenue: 1,173 million CNY in 2022, expected to grow to 1,459 million CNY in 2024, reflecting a 19% increase [9]. - Operating profit (EBIT): 61 million CNY in 2022, expected to rise to 146 million CNY in 2024, with a significant growth rate of 28% [9]. - Net profit: 77 million CNY in 2022, projected to reach 143 million CNY in 2024, indicating a 33% increase [9]. - Earnings per share (EPS): Expected to be 1.50 CNY in 2024 and 2.57 CNY in 2026 [9][22]. Valuation Metrics - The company is assigned a higher-than-industry-average valuation of 36 times PE for 2024, compared to the industry average of 33 times PE [22]. - The projected PE ratios for the upcoming years are as follows: - 2024E: 30.43 - 2025E: 23.11 - 2026E: 17.84 [9][25].