Fortior Technology(Shenzhen) (SH:688279) Haitong Securities·2024-06-03 10:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company achieved a revenue of 411 million yuan in 2023, representing a year-over-year increase of 27.37%, and a net profit attributable to the parent company of 175 million yuan, up 23.13% year-over-year [4]. - The company is focusing on emerging application markets and entering high-barrier sectors, with a sales proportion of 70.99% from smart small appliances, electric tools, and sports travel [5]. - The company has made significant progress in automotive electronics, achieving ISO26262 functional safety management system certification, with a sales proportion in this sector reaching 5% in 2023 [5]. Financial Performance - The company’s revenue is projected to grow from 411 million yuan in 2023 to 532 million yuan in 2024, and further to 677 million yuan in 2025, with year-over-year growth rates of 29.4% and 27.2% respectively [6][14]. - The net profit is expected to increase from 175 million yuan in 2023 to 206 million yuan in 2024, and to 247 million yuan in 2025, with corresponding growth rates of 17.9% and 20.0% [6][14]. - The company’s gross margin is forecasted to stabilize around 53.5% in 2023, with slight improvements in subsequent years [8][14]. Business Development - The company is deepening its presence in high-threshold application markets such as white goods, servers, and automotive sectors, which are expected to provide significant growth opportunities [13]. - The company’s R&D investment totaled approximately 84.67 million yuan in 2023, reflecting a year-over-year increase of 32.63%, indicating a strong commitment to innovation and development in emerging industries [13]. Valuation and Forecast - The company is expected to maintain a high P/E ratio, with a projected range of 50x-55x for 2024E, suggesting a reasonable value range of 111.50 yuan to 122.65 yuan per share [14]. - The earnings per share (EPS) is projected to be 1.89 yuan in 2023, increasing to 2.23 yuan in 2024, and further to 2.68 yuan in 2025 [8][14].