xinje(603416) Huachuang Securities·2024-07-31 06:01Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 42.8 CNY [3][19]. Core Insights - The company reported a revenue of 797 million CNY in the first half of 2024, representing a year-on-year increase of 10.9%. The net profit attributable to shareholders was 127 million CNY, up 21.7% year-on-year, while the net profit excluding non-recurring items reached 113 million CNY, marking a 30.8% increase year-on-year [1][5]. - The report highlights significant growth in the PLC (Programmable Logic Controller) segment, which achieved a revenue of 312 million CNY, a year-on-year increase of 26.7%, despite a decline in the overall small PLC market [5][19]. - The company is expected to see revenue growth of 19.6% in 2024, with projected revenues of 1.8 billion CNY, and net profit growth of 31.6%, reaching 262 million CNY [2][5]. Financial Summary - The company’s total revenue for 2023 is projected at 1.505 billion CNY, with expected growth to 1.799 billion CNY in 2024, 2.161 billion CNY in 2025, and 2.529 billion CNY in 2026 [2][5]. - The net profit attributable to shareholders is forecasted to decline by 10.4% in 2023 to 199 million CNY, followed by a recovery with 262 million CNY in 2024, 324 million CNY in 2025, and 394 million CNY in 2026 [2][5]. - The report indicates an increase in gross margin to 38.5% in the first half of 2024, up 5.63 percentage points year-on-year, primarily due to the higher proportion of high-margin PLC products [5][19].