Raycus(300747) 申万宏源·2024-04-29 05:02Investment Rating - The report maintains a Buy rating for the company, citing strong growth in core, strategic, and international businesses, as well as favorable valuation metrics compared to industry peers [15] Core Views - The company's revenue and profitability are expected to grow steadily, with projected revenue increasing from RMB 3,680 million in 2023 to RMB 6,414 million in 2026, and net profit attributable to parent company shareholders rising from RMB 217 million in 2023 to RMB 763 million in 2026 [1][9] - Gross margin improved significantly, reaching 27.02% in Q1 2024, up 3.25 percentage points from 23.77% in 2023, driven by cost control measures and process improvements [8] - The company's core business continues to dominate the domestic market for high-power fiber lasers, while strategic and international businesses are expanding rapidly, particularly in sectors like new energy, automotive, and shipbuilding [15] Financial Summary - Revenue growth is expected to accelerate, with year-on-year growth rates projected at 19.9% in 2024, 20.3% in 2025, and 20.9% in 2026 [9] - Net profit attributable to parent company shareholders is forecasted to grow at a compound annual growth rate (CAGR) of 52.2% from 2023 to 2026, reaching RMB 763 million by 2026 [1][9] - Earnings per share (EPS) are expected to increase from RMB 0.38 in 2023 to RMB 1.35 in 2026, reflecting strong profitability growth [9] Business Performance - In Q1 2024, the company achieved revenue of RMB 801 million, a year-on-year increase of 1.94%, and net profit attributable to parent company shareholders of RMB 64 million, up 44.3% year-on-year [8][9] - The company's comprehensive expense ratio decreased slightly to 15.98% in Q1 2024, down from 16.50% in Q1 2023, with notable reductions in sales expenses [8] - R&D expenses remained high at 8.70% of revenue in Q1 2024, reflecting the company's continued investment in innovation and technological advancement [8] Valuation and Market Position - The company's price-to-earnings (PE) ratio is projected to decline from 54 in 2023 to 15 in 2026, indicating improving valuation metrics [9] - Compared to industry peers, the company's PE ratio is lower, with an average PE of 43 for comparable companies in the laser industry, suggesting potential undervaluation [15] - The company's market share in high-power fiber lasers remains strong, and its strategic focus on international markets and high-end applications is expected to drive future growth [15]