Radco Laser achieved high growth in the first three quarters of 23 years. In the third quarter, Radical Laser achieved revenue of 792 million yuan, an increase of 2.34% year on year; net profit to mother was 60.1375 million yuan, an increase of 442.72% year on year. In the first three quarters of 2023, Ruike Laser's revenue was about 2,583 billion yuan, up 11.29% year on year; net profit attributable to shareholders of listed companies was about 172 million yuan, up 422.5% year on year.
The Huangshi base was completed and put into operation, and the company's competitiveness is expected to be further enhanced. According to news from the company's official website, at 9 a.m. on December 21, the “Huangshi Smart Factory” commissioning ceremony of Ruike Laser's subsidiary Hubei Smart Photonics Technology Co., Ltd. and the Laser Intelligent Manufacturing Industry Forum were held in Huangshi, Hubei.
The successful commissioning ceremony of the Ruike Laser Huangshi Smart Factory marks the advancement of the Ruike Laser production model to high-end, intelligent, and green.
The transfer of minority shares in the holding company Shanghai Guoshen is conducive to promoting the development of Shanghai Guoshen. According to the “Notice on Relinquishing Priority Purchase Rights and Related Transactions” issued by the company on December 22, 2023, the minority shareholders of Shanghai Guoshen intend to transfer 42.3036% of Shanghai Guoshen's shares to GongRong Science Innovation and Valin Tsusan, which is conducive to making full use of the resource advantages of Gongrong Science Innovation and Valin Tsushan, bringing new opportunities for rapid development to Shanghai Guoshen and further enhancing the comprehensive strength of Shanghai Guoshen.
Profit forecast and investment advice: We expect the company's net profit to be 2.57/4.04/546 million yuan in 23-25 years, respectively, an increase of 529%/57%/35% year-on-year. Based on the valuation level of comparable companies in the industry, considering that the company is a leading enterprise in the laser field, continuously achieving domestic substitution, and gradually optimizing the competitive pattern of the industry. Furthermore, the commissioning of the new base is expected to help further improve the company's competitiveness, we gave the company a 24-year net profit estimate of 40 times, corresponding to a reasonable value of 28.50 yuan/share, and gave it a “buy” rating.
Risk warning: Market competition increases risk, new technology development and application risk, macroeconomic fluctuation risk, raw material price fluctuation, and supply risk.