BOOMY(688290) 广发证券·2024-08-01 01:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 32.64 CNY per share based on a 40x PE valuation for 2024 [3][57]. Core Insights - The company's performance in Q2 2024 shows a significant recovery, with revenue of approximately 71.44 million CNY, a year-on-year increase of 76%, and a quarter-on-quarter increase of 207%. The net profit for the same period was 23.57 million CNY, marking a turnaround from a loss in Q1 2024 [1][17]. - The demand for spent fuel processing in China is expected to grow, as the current processing capacity is only 50 tons per year, indicating a clear opportunity for the company to benefit from this market gap [1][32]. - The company is expanding into new growth areas such as renewable energy and healthcare, with strategic acquisitions and product development aimed at military and defense sectors [1][11]. Summary by Sections Company Overview - The company specializes in the research, development, production, and sales of special robots and intelligent equipment, primarily for the nuclear industry, including spent fuel processing [11][12]. Financial Performance - In the first half of 2024, the company achieved revenue of approximately 94.7 million CNY, a year-on-year increase of 2.22%, and a net profit of about 12.4 million CNY, up 18.16% year-on-year [1][17]. - The company forecasts significant growth in EPS, estimating 0.82 CNY for 2024, 1.44 CNY for 2025, and 2.13 CNY for 2026 [2][57]. Market Potential - The nuclear power sector in China is experiencing a resurgence, with approvals for new nuclear units accelerating, which is expected to enhance the downstream market conditions [26][30]. - The importance of spent fuel processing is increasing, with projections indicating a substantial rise in the demand for processing capabilities in the coming years [32][38]. Competitive Position - The company has established a strong foothold in the nuclear industry, with a focus on high-tech equipment and robots that meet stringent safety and operational standards [11][40]. - The company is also working on domestic production of critical components, reducing reliance on imports and enhancing its competitive edge [40][46]. Investment Strategy - The company is investing in high-end intelligent equipment and robot manufacturing bases, as well as product R&D centers, to bolster its production capacity and technological capabilities [46][51]. - The strategic partnership with China National Nuclear Corporation (CNNC) is expected to deepen collaboration and enhance the company's market position [45][46].