Glonhui, May 19 丨 Dongfangcai Securities's 18th research report pointed out that recently, Alto Electronics (002587.SZ) released reports for 2022 and the first quarter of 2023. Affected by the macroeconomic downturn and weak market demand, there was great pressure on some business development and order delivery, but the company continued to develop innovative businesses by actively adjusting the product structure. With the liberalization and accelerated recovery of the global market, the LED display industry as a whole showed a clear improvement in the first quarter of 2023. As a leading enterprise in the industry, the company had a balance of domestic and foreign business, and laid out emerging fields such as XR virtual photography and digital virtual people ahead of schedule, superimposed the steady progress of the digital network business, and is expected to gradually enter a performance recovery period. As a result, the company's revenue for 2023/2024/2025 is estimated to be 1,308/1618/2.08 billion yuan; the estimated net profit returned to the mother is 1.10/152/199 million yuan, EPS is 0.17/0.23/0.30 yuan respectively, and the corresponding PE is 35.75/25.82/19.79 times respectively, maintaining the “increase in holdings” rating.