Sharetronic(SZ:300857) Huachuang Securities·2024-08-11 13:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 90.72 CNY, compared to the current price of 55.60 CNY [1][2]. Core Views - The company reported strong performance in H1 2024, achieving revenue of 3.578 billion CNY (up 94.51% year-over-year) and a net profit of 358 million CNY (up 216.58% year-over-year) [1]. - In Q2 2024, the company generated revenue of 1.819 billion CNY (up 75.92% year-over-year and up 3.43% quarter-over-quarter) and a net profit of 196 million CNY (up 191.38% year-over-year and up 20.52% quarter-over-quarter) [1][2]. - The company's strategic focus on "AI + Cloud" is progressing steadily, with continuous product launches in high-end cloud services and significant investments in R&D to enhance innovation and core technology capabilities [2]. - The company is optimizing its supply chain management, which has led to a decrease in raw material costs, and is enhancing its manufacturing capabilities through smart manufacturing and unmanned factory initiatives [2]. - The growth in the company's smart storage and smart IoT businesses is contributing to an overall increase in gross margins [2]. Financial Summary - The company expects revenues of 8.199 billion CNY, 10.955 billion CNY, and 13.503 billion CNY for 2024, 2025, and 2026, respectively, with net profits projected at 806 million CNY, 1.138 billion CNY, and 1.478 billion CNY for the same years [2][3]. - The earnings per share (EPS) are forecasted to be 3.29 CNY, 4.64 CNY, and 6.03 CNY for 2024, 2025, and 2026, respectively [3]. - The company’s total revenue for 2023 was 4.658 billion CNY, with a year-over-year growth rate of 47.9% [3].