Secote co.ltd(SH:603283) HUAXI Securities·2024-08-11 08:37Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price based on its growth potential in the consumer electronics and semiconductor sectors [1][5]. Core Insights - The company achieved a revenue of 1.631 billion yuan in H1 2024, representing a year-on-year increase of 16.21%, with Q2 revenue growing by 24.36% compared to Q1, driven by strong competitiveness in the consumer electronics sector and sufficient orders [2]. - The net profit attributable to the parent company reached 154 million yuan in H1 2024, up 48.87% year-on-year, with a significant increase in profitability observed in Q2 [3]. - The company is expected to benefit from the AI industry's growth, particularly in the 3C equipment sector, as well as from the expansion of HBM measurement equipment due to rising demand [4]. Summary by Sections Revenue Performance - H1 2024 revenue was 1.631 billion yuan, up 16.21% year-on-year, with Q2 revenue at 857 million yuan, a 24.36% increase [2]. - The company has a strong order backlog, with inventory and contract liabilities at 1.666 billion yuan and 399 million yuan, respectively, showing a quarter-on-quarter increase of 21% and 3% [2]. Profitability - H1 2024 net profit attributable to the parent company was 154 million yuan, a 48.87% increase year-on-year, with Q2 net profit at 60 million yuan, up 93% [3]. - The gross profit margin improved to 44.99%, an increase of 4.02 percentage points year-on-year, while the operating expense ratio was stable at 33.15% [3]. Market Outlook - The company is well-positioned to benefit from the upcoming launch of new Apple products and the overall growth in the consumer electronics market [4]. - The demand for HBM technology is expected to drive significant growth, with the company actively expanding its product line and securing orders from both international and domestic clients [4]. Financial Projections - Revenue forecasts for 2024-2026 are set at 5.353 billion, 6.460 billion, and 7.453 billion yuan, reflecting year-on-year growth rates of 20%, 21%, and 15% respectively [5]. - Adjusted net profit projections for the same period are 884 million, 1.059 billion, and 1.218 billion yuan, with expected growth rates of 29%, 20%, and 15% [5].