Focus Lightings Tech CO.(300708) 东兴证券·2024-02-18 16:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a relative strength compared to the market benchmark index with an expected return of 5% to 15% [27]. Core Insights - The company achieved a revenue growth of 22.30% in 2023, with total revenue reaching 2.481 billion yuan. The net profit attributable to the parent company was 121.15 million yuan, marking a significant increase of 291.41% year-on-year [24][19]. - The gross margin improved to 10.44%, an increase of 1.33 percentage points compared to the previous year. The production of LED chips continued to grow, with a total output of 21.74 million pieces in 2023, up 8.37% from 2022 [24][19]. - The company is actively expanding its Mini LED product line, which is expected to benefit from the rapid growth of the Mini LED industry. The market size for Mini LED in mainland China is projected to grow significantly, with a compound annual growth rate of 50% from 2020 to 2026 [24][19]. Financial Performance Summary - Revenue Forecast: The company is projected to achieve revenues of 3.044 billion yuan in 2024, 3.772 billion yuan in 2025, and 4.526 billion yuan in 2026, reflecting a consistent growth trajectory [7]. - Net Profit Forecast: The net profit is expected to reach 143.08 million yuan in 2024, 233.54 million yuan in 2025, and 292.36 million yuan in 2026, indicating strong profitability growth [7]. - Earnings Per Share (EPS): The EPS is forecasted to be 0.21 yuan in 2024, 0.35 yuan in 2025, and 0.44 yuan in 2026, showcasing an upward trend in earnings [7]. Market Position and Strategy - The company is recognized as a leading player in the LED chip industry, focusing on high-value products with significant technological barriers. Its products are primarily used in high-end applications such as display backlighting and general lighting [24][19]. - The company has enhanced its efforts in expanding overseas markets, with international revenue increasing by 23.30% year-on-year [24][19]. Future Outlook - The company is expected to benefit from the ongoing development of the Mini LED industry, with its production capacity set to expand further. The anticipated growth in the Mini LED market presents a significant opportunity for the company [24][19].