Event: The company released its 2024 annual report, with annual revenue of 1.454 billion yuan, +18.62% year-on-year, net profit attributable to the parent company of 133 million yuan, +23.53% year-on-year, non-net profit of 106 million yuan, +23.01% year-on-year, gross profit margin of 37.69%, -3.42pct year-on-year.

Single-quarter performance growth continued, and gross profit margin was under pressure: In 4Q2024, the company achieved revenue of 384 million yuan, +19.22% year-on-year/-19.41% month-on-month, and net profit attributable to the parent company of 29 million yuan, +25.25%/-39.41% month-on-month, deducting non-net profit of 14 million yuan, -24.24%/-64.50% year-on-year, and gross profit margin of 30.70%, -15.06pct year-on-year/-9.21pct month-on-month. The change in the company's gross profit margin in the fourth quarter is due to the change in product structure.

Laser profitability increases, equipment gross profit margin is under pressure: In 2024, in terms of business, laser revenue will be 701 million yuan, +5.36% year-on-year, and gross profit margin will be 45.56%, +6.40pct year-on-year; The revenue of laser/optical intelligent equipment was 628 million yuan, a year-on-year increase of +44.02%, and the gross profit margin was 27.84%, a year-on-year increase of -15.36pct. The profitability of lasers has increased significantly, and we judge that the equipment business is a relatively low profitability of new energy equipment that will affect the gross profit margin under pressure.

The business has its own bright spots, and we look forward to the flexibility of AR and other businesses: Lasers: The company continues to provide customers with product updates, and 500W MOPA lasers help customers improve cleaning efficiency and processing efficiency. Equipment: testing equipment, in 2024, the company's camera inspection equipment will be recognized by customers and receive large orders, and we expect that there will be greater flexibility in AR/VCSEL and other detection in the future; Perovskite equipment, mainly focusing on the bidding of the customer's GW-level production line; Passive component equipment, the 2024 capacitance test handler has been sent to the customer's site for verification; PCB equipment, the company has developed an FPCB laser drilling machine for opening holes and blind holes in flexible circuit boards, and has been verified at the customer's site.

Investment suggestion: The company's performance is growing rapidly, various businesses are progressing smoothly, and there is great flexibility in AR detection in the future. We estimate that the company's net profit attributable to the parent company in 2025-2027 will be 2.11/2.61/313 million yuan, EPS will be 2.22/2.74/3.29 yuan, and the corresponding PE will be 26.24/21.21/17.65 times.

Risk warning: the industrialization progress of new products is less than expected; the risk that the demand for new energy is less than expected; the risk of declining demand for consumer electronics; Raw material supply and price fluctuation risk.