MOONS’(603728) GOLDEN SUN SECURITIES·2024-04-30 14:02Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company experienced short-term pressure on performance due to factors such as the relocation of production bases and underperformance of the Vietnam factory, leading to a significant decline in profits [1]. - The company reported a revenue of 2.543 billion yuan in 2023, a year-on-year decrease of 14.09%, and a net profit attributable to shareholders of 140 million yuan, down 43.20% year-on-year [1]. - The first quarter of 2024 saw a slight revenue decline to 608 million yuan, a decrease of 6.34% year-on-year, with a dramatic drop in net profit to 6 million yuan, down 80.03% year-on-year, primarily due to increased impairment losses [1]. - Despite short-term adjustments, the long-term growth logic remains intact, with expectations for recovery in downstream markets and growth in related business areas [1]. - The company is a leading global manufacturer of motors and drive systems, with significant advancements in stepper motors, brushless motors, and hollow cup motors [1]. - An investment of up to 65.14 million USD is planned for the wholly-owned subsidiary in Vietnam to optimize capacity structure and better serve overseas clients [1]. Financial Summary - The company is projected to achieve revenues of 3.082 billion yuan, 3.843 billion yuan, and 4.470 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 253 million yuan, 376 million yuan, and 503 million yuan [2][3]. - The current market capitalization corresponds to a price-to-earnings (P/E) ratio of 96.5, 65.0, and 48.6 for the years 2024, 2025, and 2026, respectively [2][3]. - The company’s gross margin for Q1 2024 was 38.08%, remaining stable year-on-year [1].