BOOMY(SH:688290) Tianfeng Securities·2024-08-20 06:38Investment Rating - The report initiates coverage with a "Buy" investment rating for the company, setting a target price of 45.30 CNY per share based on a 30x PE for 2025 [3][6]. Core Viewpoints - The company is a leader in the nuclear industrial intelligent equipment sector, focusing on special robots and intelligent equipment, with over 90% of its revenue derived from nuclear industrial intelligent equipment and series robots in 2023 [1][3]. - The company has experienced a significant turnaround in performance, with a 75.68% year-on-year increase in revenue and a 405.84% increase in net profit attributable to the parent company in Q2 2024 [1][3]. - The company emphasizes R&D, with 40% of its workforce dedicated to research and development, and has established an employee stock ownership plan to bind core sales and technical personnel [1][18][22]. Summary by Sections 1. Industry Leadership and Technological Investment - The company has been recognized as a leader in the nuclear industrial intelligent equipment industry, continuously increasing its technological investments [1]. - In 2023, the company achieved a gross margin close to 50% in its nuclear industrial intelligent equipment segment [1][15]. - The company has maintained a research and development expense ratio above 7% from 2019 to H1 2024, with 148 R&D personnel [18][22]. 2. Technological Leadership in Nuclear Products - The company benefits from China's commitment to a "closed nuclear fuel cycle," with a pressing need for spent fuel processing due to insufficient current processing capacity [2][26]. - The demand for spent fuel processing is expected to grow rapidly, with projections indicating a need to process 2,825 tons of spent fuel by 2035 [2][26]. 3. Strategic Business Development - The company is advancing its "nuclear + military + civilian" development strategy, with a focus on expanding its product offerings in military and civilian sectors [3][12]. - In 2023, the company generated 17.81 million CNY in non-nuclear business revenue, accounting for 6.97% of total revenue [3][12]. 4. Financial Forecast and Valuation - The company forecasts net profits attributable to the parent company of 118.42 million CNY, 154.34 million CNY, and 201.85 million CNY for 2024, 2025, and 2026, respectively, with significant year-on-year growth rates [3][5]. - The company's financial metrics indicate a projected PE of 28, 21, and 16 for the years 2024, 2025, and 2026, respectively [3][5].