Maintain profit forecasts, maintain target prices, and maintain holdings growth ratings. The company announced the completion of the acquisition of 52% of Shanghai Bai'an Industrial's shares for 156 million yuan. We maintain net profit attributable to the parent company in 2023-2025 at 0.65/133/197 million yuan, corresponding to EPS of 0.26/0.54/0.80 yuan. Maintain the target price of 54 yuan and maintain the holdings increase rating.
Announcing the acquisition of Bayan, the revenue target is challenging. The company announced the acquisition of 52% of Bayan's shares. After completion, Bayan will be merged. Judging from the disclosed financial data, the company's 2022/2023Q3 revenue was 53 million/026 million yuan, respectively. According to the performance promise, the 2024-2026 revenue needs to reach 1.6/2/250 million yuan respectively. Compared with the previous two periods, there is a significant increase and increase in revenue. At the same time, after deducting non-net profit, losses need to be reversed. 2024-2026 is 0.1/0.15/0.2 billion yuan. At the same time, the agreement stipulates the remaining share acquisition arrangements. If 85% of the cumulative net profit or cumulative revenue is completed without impairment of goodwill, the company can be required to acquire the remaining 48% of the shares.
Strengthen the capabilities of the 1550 light source module and expand the strategic layout. Shanghai Bai'an Industrial has quantitative solutions for automotive-grade 1550nm lidar light source modules, and is also a supplier to major 1550 lidar customers. We expect that after completing the transaction, the company's original fiber laser device layout, along with the capabilities and supply chain position of Bayan light source modules, will expand the company's new business and enrich the company's product line.
Catalysts: The lidar market is developing rapidly, and downstream smart cars are picking up.
Risk warning: Lidar business development falls short of expectations, transactions cannot be completed on schedule, risk of impairment of goodwill, and the main target customer business concentration is high.