HQTI(688281) 华泰证券·2024-08-12 23:50Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 111.80 [6] Core Views - The company achieved revenue of RMB 485 million in H1 2024, representing a year-on-year increase of 27.04%, and a net profit attributable to the parent company of RMB 216 million, up 17.44% year-on-year [1] - The company is expected to continue its growth trajectory, with projected net profits of RMB 507 million, RMB 647 million, and RMB 819 million for 2024, 2025, and 2026 respectively [1] - The scarcity of the company's main business in stealth materials and the transition of several product lines into small-batch production indicate significant growth potential once these products enter full-scale production [1] Summary by Sections Financial Performance - In Q2 2024, the company reported revenue of RMB 238 million, a year-on-year increase of 21.71%, but a quarter-on-quarter decrease of 4.06% [1] - The gross margin for H1 2024 was 56.27%, down 1.80 percentage points year-on-year, primarily due to the increased revenue share from new research products [3] Product Development - The company is actively advancing its production models in the military sector and has begun small-batch trials for new products, expanding its stealth materials into various applications including aircraft and naval vessels [2] - In the civilian sector, the company is developing a range of materials such as acoustic metamaterials and high-efficiency thermal resistance materials, targeting applications in key national industries [2] Cost Structure - Sales expenses for H1 2024 were RMB 8 million, an increase of 18.07% year-on-year, while management expenses rose significantly by 65.18% to RMB 32 million, attributed to the expansion of subsidiaries and increased personnel costs [3] - Research and development expenses were RMB 33 million, maintaining a high R&D expense ratio of 6.81% [3] Contracts and Projects - The company has secured production contracts totaling RMB 10.74 million from various clients, indicating steady progress in its production capabilities [4] - Subsidiaries are advancing in their respective projects, with some production lines entering trial phases and aiming for full production by the second half of 2024 [4]