Huarui Precision(SH:688059) Huachuang Securities·2024-08-06 05:31Investment Rating - The report maintains a "Strong Buy" rating for the company [1][2]. Core Views - The company's performance in the first half of 2024 exceeded expectations, with revenue of 410 million yuan, a year-on-year increase of 14.93%, and a net profit of 72 million yuan, up 15.35% year-on-year [1][2]. - The growth in revenue and profit is attributed to the company's proactive response to market changes through technological innovation, improved sales channels, and enhanced internal management [2]. - The demand for CNC tools is expected to continue to rise in the second half of the year, driven by the manufacturing industry's recovery and price increases in raw materials like tungsten powder [2]. - There is significant potential for domestic substitution in the high-end tool market, with overseas exports being a crucial growth driver [2]. Financial Summary - The company is projected to achieve revenues of 993 million yuan, 1.254 billion yuan, and 1.590 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 204 million yuan, 270 million yuan, and 392 million yuan [2][6]. - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 3.30 yuan, 4.36 yuan, and 6.33 yuan respectively [2][6]. - The target price is set at 59.40 yuan, based on a 18x PE ratio for 2024 [2][6].