STEC(600820) Guotai Junan Securities·2024-07-17 23:01Investment Rating - The report assigns an "Accumulate" rating to the company, maintaining the previous rating with a target price of 9.00 CNY, while the current price is 6.40 CNY [1]. Core Views - The company is actively engaged in the construction of vehicle-road-cloud integration projects, with a 11% increase in new orders in Q2 2024, totaling 23.5 billion CNY [1][2]. - The Shanghai government has issued permits for driverless intelligent connected vehicles, which will initiate real-world testing for citizens [2]. - The company aims to leverage global opportunities in the intelligent connected vehicle sector, focusing on infrastructure development and integration [2]. Summary by Sections Company Events - The company has signed new orders worth 235 billion CNY in Q2 2024, reflecting an 11% increase [1]. - The total new orders for the first half of 2024 reached 461 billion CNY, a 9% increase year-on-year [2]. Financial Performance - The company reported a net profit of 28.6 billion CNY in 2023, with an expected increase to 29.4 billion CNY in 2024 [8]. - The earnings per share (EPS) is projected to be 1.02 CNY for 2024, with a growth rate of 9% [2][8]. Business Segments - The construction segment accounted for 85% of the total business, with a 13% increase in revenue [2]. - The digital group focuses on digital consulting, software and hardware development, and data services, contributing to the company's overall growth [5][6]. Market Position - The company has a current dividend yield of 5.78% and a price-to-book (PB) ratio of 0.69, indicating a favorable valuation compared to historical averages [2]. - The company is positioned as a leader in intelligent transportation system design and has been involved in several pioneering projects in the sector [6].