Investment Rating - The report maintains a "Buy" rating for TK Group with a target price (TP) of HKD 2.79, based on a FY24E price-to-earnings (P/E) ratio of 8.2 times, consistent with its 5-year historical forward P/E ratio [2][17][28]. Core Views - TK Group reported a positive profit for the first half of 2024, with a year-on-year profit growth exceeding 40%. The optimistic outlook is supported by strong order momentum, new customer acquisitions, and recovery in revenue/profit margins across most segments [2][17]. - The company is expected to achieve a revenue growth of 20% and a profit growth of 38% in FY24E, driven by increased orders in the consumer electronics sector and improved operational efficiency [17][35]. - The report highlights that TK Group has a solid cash position after repaying a significant portion of its bank loans in FY23, allowing for potential acquisitions and maintaining a high dividend payout level [17][35]. Financial Summary - Revenue projections for TK Group are as follows: - FY22: HKD 2,279 million - FY23: HKD 1,946 million - FY24E: HKD 2,339 million (20.2% YoY growth) - FY25E: HKD 2,705 million (15.6% YoY growth) - FY26E: HKD 3,135 million (15.9% YoY growth) [3][30][32]. - Net profit estimates are: - FY22: HKD 226.9 million - FY23: HKD 204.2 million - FY24E: HKD 281.4 million (37.8% YoY growth) - FY25E: HKD 334.8 million (19.0% YoY growth) - FY26E: HKD 399.1 million (19.2% YoY growth) [3][30][32]. - The report indicates an expected gross profit margin (GPM) increase to 24.3% in 1H24E from 23.3% in 1H23, reflecting improved operational leverage [17][35]. Valuation Metrics - The report provides the following valuation metrics: - P/E ratio for FY24E: 5.6 - P/B ratio for FY24E: 0.9 - Dividend yield for FY24E: 8.1% [3][32]. - The report emphasizes that the stock offers an attractive risk/reward profile, considering the expected EPS growth of 38% in FY24E and a dividend yield of 8% [17][35].
东江集团控股：上半年利润为正 ； 订单势头强劲 ， 将持续到下半年 / FY25E