THEC(BJ:833509)2024-07-29 05:30Investment Rating - The report assigns a "Recommended" investment rating to the company [4][7]. Core Viewpoints - The company, Tonghui Electronics, established in 1994, specializes in the research, production, and sales of electronic measurement instruments, with a product range that includes component parameter testers, safety wire testers, weak signal detectors, and power electronic testers, serving various sectors such as consumer electronics, communications, semiconductors, and renewable energy [2][16]. - The company is expected to achieve a net profit of 0.45 billion, 0.56 billion, and 0.69 billion yuan for the years 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 16.21%, 24.50%, and 24.06% [4][52]. Company Business Structure - Tonghui Electronics has a diverse product structure, with major revenue sources from component parameter testers, safety wire testers, and weak signal detectors. The company has established a four-pronged sales model, primarily relying on distribution and direct sales [16][18]. - The company has a stable management team, with key personnel involved in various operational aspects, ensuring consistent decision-making and management [16]. Financial Analysis - In Q1 2024, the company reported a revenue of 31.57 million yuan, a year-on-year increase of 10.55%, and a net profit of 4.40 million yuan, up 21.05% year-on-year. The company's gross profit margin was 53.61%, and the net profit margin was 13.69% [5][20][26]. - The company has maintained a steady increase in R&D investment over the past five years, with R&D expenses reaching 31.55 million yuan in 2023, representing 18.63% of revenue [5][39]. Industry Analysis - The electronic measurement instrument industry is closely tied to the overall electronics industry, driven by investments in new production lines and upgrades in sectors such as 3C consumer electronics, semiconductors, and new energy vehicles [42][47]. - The industry is characterized by intense competition, with many domestic companies producing mid-to-low-end products, while international firms dominate the high-end market. However, Tonghui Electronics has established a competitive advantage in specific product categories [47][48]. Profit Forecast and Investment Rating - The company is projected to achieve total revenues of 1.95 billion, 2.39 billion, and 2.91 billion yuan from 2024 to 2026, with corresponding year-on-year growth rates of 15.16%, 22.56%, and 21.76% [4][52]. - The report emphasizes the company's focus on technological R&D and product development, particularly in precision impedance measurement, which positions it well for future growth [4][52].