Appo(SH:688007) Tianfeng Securities·2024-05-31 06:07Investment Rating - The investment rating for the company is "Buy" with a target price set to achieve a relative return of over 20% within the next six months [6][20]. Core Insights - The company is a leading player in the laser display sector, with its unique ALPD® technology presenting significant barriers to entry. The B-end business has shown continuous recovery since 2023, while the automotive sector is expanding, marking a breakthrough in revenue generation. The company is expected to establish a new growth trajectory [5][30]. - The company has received a development notice from Seres Automotive, indicating its role as a supplier for in-car optical solutions, which is expected to enhance its market presence in the automotive sector [4][10]. Financial Summary - Total assets for the company were reported at 4,333.35 million in 2022, with a slight decrease to 4,220.57 million in 2023, and projected to rise to 4,756.54 million in 2024 [3][8]. - The company's revenue for 2022 was 2,541.14 million, which decreased to 2,213.36 million in 2023 but is expected to rebound to 2,753.46 million in 2024, reflecting a growth rate of 24.40% [7][22]. - The net profit attributable to the parent company was 119.44 million in 2022, declining to 103.19 million in 2023, with projections of 176.45 million in 2024, indicating a significant recovery [7][22]. - The company’s earnings per share (EPS) were 0.26 in 2022, dropping to 0.22 in 2023, with expectations of rising to 0.38 in 2024 [7][22]. Market Position and Future Outlook - The automotive optical business is expected to see significant growth, with the company achieving revenue of 48.03 million in the first quarter of 2024 from this segment. The successful launch of the Wanjie M9 model, which has already received over 80,000 orders, is a positive indicator for future sales [11][30]. - The company maintains its profit forecast for 2024-2026, expecting net profits of 176.45 million, 244.66 million, and 308.48 million respectively, with corresponding price-to-earnings ratios of 45.9x, 33.1x, and 26.2x [5][7].