BOTON TECHNOLOGY(300031) 东吴证券·2024-07-07 22:31Investment Rating - The report maintains a "Buy" rating for Baotong Technology (300031) [2] Core Views - Baotong Technology's dual-core business (industrial internet and mobile internet) is expected to continue steady growth, with profit elasticity likely to be released steadily [7] - The company's 2024H1 performance is expected to exceed previous expectations, with a strong release trend in both net profit and non-GAAP net profit [5] Industrial Internet Business - Baotong Technology focuses on key industrial scenarios such as open-pit mines, underground mines, steel smelting, sand and gravel aggregates, and bulk ports, providing full-stack intelligent bulk material handling services [2] - Domestic sales of intelligent terminal products for smart mines and ports doubled year-on-year in 2024H1 [2] - The company is deepening cooperation with global mining giants BHP and Rio Tinto, while expanding its global supply chain layout with a digital conveyor belt production base in Thailand and an African technical service center in Guinea [2] - The establishment of a marketing headquarters in 2024H1 is expected to enhance the company's marketing capabilities and drive further growth in intelligent terminal product sales [2] Mobile Internet Business - The game "Mosaic Heroes" has achieved stable profit release, with cumulative revenue exceeding $100 million by 2024H1 [6] - The game maintained strong performance in the iOS game bestseller list, with average rankings of 7/12/29/44 in 2023M9, 2023Q4, 2024Q1, and 2024Q2 respectively [6] - The company is expected to launch new games in 2024H2, which may contribute to performance growth [6] Financial Forecasts - Revenue is expected to grow from 3,655 million yuan in 2023 to 5,696 million yuan in 2026, with a CAGR of 15.9% [4] - Net profit attributable to the parent company is forecasted to increase from 106 million yuan in 2023 to 574 million yuan in 2026 [4] - EPS is projected to grow from 0.26 yuan in 2023 to 1.39 yuan in 2026 [4] - The company's P/E ratio is expected to decrease from 55.5 in 2023 to 10.26 in 2026 [4] Valuation Metrics - The current market price is 14.27 yuan, with a PB ratio of 1.60 and a PE ratio of 14.75 based on 2024E earnings [16][4] - The company's market capitalization is 5,886.71 million yuan, with a circulating market value of 4,934.04 million yuan [16]