Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index in the next six months [11]. Core Insights - The company's gaming console parts business is under pressure as the Switch enters the later stages of its product lifecycle, but it is actively exploring existing customer order potential and expanding its customer base to mitigate impacts. Future iterations of new consoles from key customers are expected to benefit the company [2][22]. - The optical communication sector is experiencing strong demand driven by the growth of AI computing power, with all three major production bases operating at full capacity, indicating high growth potential for this business [2][32]. - The precision manufacturing segment, particularly through its subsidiary Xike Industrial, has high-quality clients such as BYD, Foxconn, and Luxshare Precision, which are expected to benefit from the recovery in consumer electronics demand [2]. Financial Summary - In 2023, the company reported revenue of 502 million yuan, a year-on-year decrease of 12.81%, and a net profit attributable to shareholders of 73 million yuan, down 37.72% year-on-year. The first quarter of 2024 showed a revenue increase of 40.70% year-on-year to 174 million yuan [21][30]. - The estimated net profits for 2024 to 2026 are projected to be 94 million yuan, 122 million yuan, and 166 million yuan, respectively, with corresponding EPS of 0.73 yuan, 0.94 yuan, and 1.29 yuan [2][29]. - The company's gross margin for 2023 was 34.58%, a decrease of 1.45 percentage points year-on-year, while the net profit margin was 15.05%, down 5.26 percentage points year-on-year [30]. Business Segments - The gaming console parts revenue decreased by 33.68% year-on-year, while the optical connectors and precision manufacturing segments saw revenue growth of 31.48% and 13.40%, respectively [30]. - The company has developed and mass-produced various optical communication products, with three manufacturing bases operating at full capacity, indicating a robust market demand [32]. - The automation equipment business, which includes automated inspection and assembly lines, is expected to enhance profitability by providing advanced products to clients in the consumer electronics sector [32].
致尚科技：游戏机业务需求承压，光通信+自动化设备打开成长空间