GoerTek(SZ:002241) Orient Securities·2024-07-18 12:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 28.50 CNY based on a 25x PE valuation for 2025 [2][4][8]. Core Insights - The company's Q2 performance exceeded expectations, with projected net profit attributable to shareholders for H1 2024 expected to be between 1.181 to 1.265 billion CNY, representing a year-on-year growth of 180% to 200% [1]. - The improvement in profitability is attributed to enhanced assembly rates from major clients in the TWS earphone and VR sectors, alongside a decrease in the proportion of lower-margin gaming console business [1]. - The company has announced adjustments to its stock incentive plan, emphasizing confidence in future profit growth, with net profit targets for 2024-2026 set to grow by at least 100% to 180% compared to 2023 [1]. - The company is positioned to benefit from the AI hardware trend, with expectations of further upgrades in acoustic products and new product launches in the VR/AR space [1]. Financial Forecasts - The forecasted earnings per share for 2024, 2025, and 2026 are 0.73 CNY, 1.14 CNY, and 1.48 CNY respectively, reflecting adjustments in revenue, gross margin, and expense ratios [2][8]. - The company's revenue is projected to grow from 105.777 billion CNY in 2024 to 129.357 billion CNY in 2026, with corresponding net profit growth from 2.509 billion CNY to 5.058 billion CNY [3][12].