Incident: Dazu Laser announced its 2024 semi-annual results forecast. The company's net profit range attributable to shareholders of listed companies was 1.21-1.26 billion yuan, up 181.34%-192.97% year on year; net profit range after deducting non-recurring profit and loss was 0.21-0.24 billion yuan, up 9.78%-25.47% year on year.

Comment:

The company is an overall solution service provider specializing in R&D, production and sales of intelligent manufacturing equipment and its key components. The company has vertical integration advantages from basic devices and complete equipment to process solutions. The main products include three categories: general components, popular products in the industry, special aircraft products, and extreme manufacturing products. Currently, general components and popular products in the industry are mainly integrated into unified sales of complete equipment, and the scale of direct external sales is small. Industry special aircraft and extreme manufacturing products are the company's main source of revenue and profit.

Industry special aircraft products are special equipment for industries such as information industry equipment, new energy equipment, semiconductor equipment, etc. This type of product has strong industry characteristics, and there are large differences between products. It needs to be individually designed and customized according to the specific needs of customers, and is greatly affected by the industry where downstream customers are located. In the field of information industry equipment, the company continues to update products and processes to achieve stable development of the consumer electronics business, and actively explore new application scenarios to meet the needs of customers in the PCB equipment business. In the field of new energy equipment, the company continues to promote a major customer strategy and accelerate the process of going overseas. In the field of semiconductor equipment, the company continues to promote technological upgrades and performance improvements of LED equipment and the development of other new products.

Extreme manufacturing products are general laser processing equipment such as standard laser cutting, welding, and marking equipment.

General laser processing equipment is mainly used in industrial processing of metal and non-metallic materials. It gradually replaces traditional machining equipment with advantages such as high speed, high accuracy, and good processing quality, greatly improving industrial processing efficiency and quality. The downstream of this business is relatively extensive and scattered, and is used in various industries such as construction machinery, construction machinery, auto parts, kitchen and bathroom hardware, electronics, and smart homes. By continuing to increase the coverage and expansion of the middle and lower end markets, the company's overall market share has steadily increased. The company has set up factories in Changsha, Tianjin, Changzhou, Zhangjiagang, Jinan, etc., to achieve nearby production delivery and service, and enhance profitability. The company has achieved breakthroughs in key industries such as steel structures and ships, and has formed close cooperation with leading customers in the industry.

Profit forecast and investment rating: The company's revenue for 2024-2026 is estimated to be 15.114/17.195/18.488 billion yuan, respectively, and net profit to mother is 1.84/1.253/1.455 billion yuan, respectively. The company's general components, popular products in the industry, industry special aircraft products, and extreme manufacturing products are developed collaboratively, and profitability is expected to continue to increase, giving the company an “gain” rating.

Risk warning: the risk that the recovery of the consumer electronics industry falls short of expectations; the risk that the development of new energy business falls short of expectations; the risk that product prices will fall due to intense market competition; the risk that performance forecasts and valuation judgments fall short of expectations.