GenTech(SH:688596) HUAXI Securities·2024-07-25 08:02Investment Rating - The report maintains a rating of "Accumulate" for the company, predicting that the stock price will outperform the Shanghai Composite Index by 5% to 15% in the next six months [21]. Core Insights - The company is expected to achieve a revenue of 1.83 to 1.90 billion yuan in H1 2024, representing a year-on-year growth of 36% to 41% [4][8]. - The net profit attributable to shareholders is projected to be between 100 to 110 million yuan, reflecting a year-on-year decline of 27% to 33% due to the decrease in fair value of equity investments [4][22]. - The company has a strong order backlog, with contracts on hand reaching 8.2 billion yuan, a year-on-year increase of 46%, which supports future revenue growth [8]. Financial Summary - The company forecasts a net profit of 552 million yuan for 2024, with a year-on-year growth of 37.5% [11][25]. - The expected earnings per share (EPS) for 2024 is 1.92 yuan, with a projected price-to-earnings (PE) ratio of 16 times based on the current stock price [25]. - Revenue projections for 2024, 2025, and 2026 are 5.396 billion yuan, 7.146 billion yuan, and 9.043 billion yuan, respectively, with year-on-year growth rates of 40.7%, 32.4%, and 26.5% [25].