HGTECH(SZ:000988) Minsheng Securities·2024-08-17 05:37Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Insights - The company achieved a revenue of 5.202 billion yuan in the first half of 2024, representing a year-on-year growth of 3.51%, and a net profit attributable to shareholders of 625 million yuan, up 7.40% year-on-year [1]. - In Q2 2024, the company reported a significant recovery in performance, with a revenue of 3.030 billion yuan, a year-on-year increase of 28.45% and a quarter-on-quarter increase of 39.42%. The net profit for Q2 was 335 million yuan, reflecting a year-on-year growth of 22.30% and a quarter-on-quarter growth of 15.57% [1]. - The company's three core businesses—perception, connectivity, and intelligent manufacturing—are showing strong growth, particularly in the intelligent manufacturing sector, which saw a revenue increase of 17.24% year-on-year, driven by significant sales growth in the new energy vehicle and shipbuilding industries [1]. - The company is solidifying its leading position in the global optical module supplier industry, with rapid advancements in product development, including the successful delivery of a full range of 400G and below optical modules and small batch deliveries of 800G modules [1]. Financial Forecasts - The company is expected to achieve net profits of 1.304 billion yuan, 1.572 billion yuan, and 1.890 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings ratios of 23x, 19x, and 16x [1][2]. - Revenue projections for the next few years are 13.475 billion yuan in 2024, 16.574 billion yuan in 2025, and 19.889 billion yuan in 2026, with growth rates of 32%, 23%, and 20% respectively [6][7]. Business Segment Performance - The intelligent manufacturing business generated 1.727 billion yuan in revenue, with a notable 73% increase in the new energy vehicle sector and a staggering 441% increase in the shipbuilding sector [1]. - The connectivity business reported a revenue of 1.595 billion yuan, down 13% year-on-year, primarily due to a decline in demand related to 5G construction cycles [1]. - The perception business achieved a revenue of 1.844 billion yuan, with sensor sales contributing 1.644 billion yuan and laser holographic anti-counterfeiting business generating 199 million yuan [1]. Market Position and Strategy - The company is actively developing new technologies and materials for next-generation optical modules, aiming to create leading solutions in "optical connectivity + wireless connectivity" [1]. - The company has successfully launched the latest single-wave 200G self-developed silicon optical chips and various 1.6T optical module products, positioning itself to meet the growing global demand for computing power in the digital age [1].