Willfar(SH:688100) GOLDEN SUN SECURITIES·2024-07-31 11:31Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has demonstrated excellent profitability quality and significant growth in overseas markets, particularly in the communication chip sector, which achieved a revenue of 270 million yuan, a year-on-year increase of 40.12% [1] - The company has a robust order backlog of 3.512 billion yuan, representing a 17% year-on-year growth, providing strong support for future business [2] - The company is expected to benefit from the ongoing digital transformation in the energy sector, with projected net profits of 657 million yuan, 822 million yuan, and 1.027 billion yuan for 2024, 2025, and 2026 respectively [17] Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 1.223 billion yuan, a year-on-year increase of 20.76%, with a net profit of 272 million yuan, reflecting a growth of 26.52% [15] - The company’s operating cash flow improved significantly, reaching 160 million yuan, a 220% year-on-year increase [2] - The company’s revenue from international business reached 225 million yuan, a remarkable growth of 93.22% [16] Product and Market Development - The company’s communication chips have been recognized for their technological advancements, achieving international certifications and increasing market share [1][16] - The company has successfully expanded its overseas market presence, securing substantial orders and enhancing its competitive position [16] Future Outlook - The company is well-positioned to capitalize on the accelerating digitalization of the energy sector, with a strong focus on smart power, water, and fire safety solutions [17] - The projected growth rates for revenue and net profit indicate a positive trajectory, with expected P/E ratios decreasing from 27 to 17 over the next three years [17][18]