Tianshui Huatian Technology (SZ:002185) Guotai Junan Securities·2024-07-14 14:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 11.76 CNY [2][4]. Core Views - The company is benefiting significantly from the recovery in domestic consumer electronics, leading to a substantial increase in profitability for the first half of 2024. The forecasted net profit for the first half of 2024 is expected to reach 190 to 230 million CNY, representing a year-on-year increase of 202.17% to 265.78% [2]. - The company is actively expanding its advanced packaging capabilities, particularly in FOPLP (Fan-Out Panel Level Package), which is expected to enhance its long-term growth prospects. The total investment for the new project is planned at 3 billion CNY, with an anticipated annual output value of no less than 900 million CNY once fully operational [2][3]. Financial Summary - The company's revenue for 2024 is projected to be 13.617 billion CNY, reflecting a growth of 20.5% compared to 2023. The net profit attributable to shareholders is expected to be 774 million CNY, a significant increase of 241.9% from the previous year [3][8]. - The earnings per share (EPS) for 2024 is estimated at 0.24 CNY, with projections of 0.37 CNY and 0.46 CNY for 2025 and 2026, respectively [3][8]. - The company’s return on equity (ROE) is expected to improve from 1.4% in 2023 to 4.7% in 2024, indicating a recovery in profitability [3][8]. Market Data - The company's current market capitalization is approximately 27.783 billion CNY, with a total share capital of 3.204 billion shares [5]. - The stock has traded within a range of 5.85 to 10.07 CNY over the past 52 weeks [5].