Incident: The company released its 2023 performance report. In 2023, it achieved revenue of 1,243 billion yuan, +5.90% year-on-year, and realized net profit of 108 million yuan, +40.71% year-on-year, after deducting non-net profit of 85 million yuan, +56.90% year-on-year.
It is estimated that in the 2023Q4 single quarter, the company achieved revenue of 339 million yuan, -7.69% /month-on-month +0.35%, realized net profit of 0.24 million yuan, -6.18%/month-on-month -31.40%, after deducting non-net profit of 0.17 million yuan, +55.31% /month-on-month.
Steady growth in performance and improvement in profitability: The company's profits have grown rapidly, and profitability has improved, mainly due to the expansion of sales scale, increased gross margin of product sales, improved operating efficiency and reasonable control on the cost side. 2023Q4's single-quarter revenue and net profit to mother declined slightly year-on-year, and we judge that this may be affected by the pace of revenue recognition. The company's new energy laser business has been recognized by leading downstream customers, providing comprehensive laser/optical solutions for cutting-edge applications in advanced manufacturing, helping to meet the latest needs and technology updates of the industry and customers, continuously reduce costs and increase efficiency, and digital reforms reduce costs and improve competitiveness.
Looking forward to the future, the module inspection+new energy business is expected to continue to contribute to performance: 1) Module testing: MR testing actively embraces North American customers, and more inspection equipment for second-generation and future product forms is being developed in an orderly manner; camera inspection and calibration equipment has been recognized by North American customers, and the future is expected to grow along with customer mass production plans; VCSEL testing second-generation equipment has passed customer acceptance. 2) New energy: Lithium battery lasers have achieved import substitution in a large proportion of customers; photovoltaic lasers have successfully delivered a full set of laser equipment for GCL's 100 MW perovskite production line in July 2023, and the next generation of GW grade production line equipment is being developed, and it is expected to occupy an important position in the industry in the future.
Investment advice: The company's performance is growing steadily, downstream module testing and new energy equipment are progressing smoothly, and there is room for future development. We expect the company's 2023/2024/2025 net profit to be 1.08/1.99/331 million yuan, EPS is 1.14/2.09/3.48 yuan/share, corresponding PE is 52.60/28.55/17.16 times, maintaining the “increase” rating.
Risk warning: the industrialization of new products falls short of expectations; the risk that demand for new energy sources falls short of expectations; the risk of falling consumer electronics demand; and the risk of fluctuations in raw material supply and prices.