FRD(300602) Guohai Securities·2024-07-19 06:30Investment Rating - The report maintains a "Buy" rating for the company [33] Core Views - The company is a leading player in the fields of cooling and electromagnetic shielding in China, with an expected increase in market share and product value driven by the recovery in downstream AI servers, switches, and AI terminals [8][22] - The company's revenue forecast for 2024-2026 has been adjusted to approximately 55.68 billion, 72.18 billion, and 87.47 billion yuan respectively, with net profits projected at 3.14 billion, 4.90 billion, and 6.55 billion yuan [8][14] - The expected earnings per share (EPS) for 2024-2026 are 0.54, 0.85, and 1.13 yuan per share, with corresponding price-to-earnings (PE) ratios of 26.26, 16.84, and 12.61 [8][14] Summary by Sections Recent Performance - For the first half of 2024, the company anticipates revenue of approximately 2.17 billion yuan, representing a year-on-year growth of about 22.05%, and a net profit of 54 million to 64 million yuan, reflecting a significant increase of approximately 1243.65% to 1492.48% [6][8] - The company expects continued high growth in net profit for Q2 2024, indicating an improvement in profitability [6] Market Position - The company has seen a decline in non-core business contributions, with investment losses from its associate company amounting to approximately 17 million yuan [6] - The company’s market share in the communication sector is increasing, with a significant release of production capacity and a notable improvement in gross margins [6][8] Financial Projections - The company’s revenue is projected to grow at rates of 28%, 30%, and 21% for 2024, 2025, and 2026 respectively, with net profit growth rates of 205%, 56%, and 34% for the same years [14][15] - The report highlights a projected return on equity (ROE) of 8%, 11%, and 13% for the years 2024 to 2026 [15]