AFR(SZ:300620) Minsheng Securities·2024-08-20 07:07Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company's performance in the first half of 2024 met expectations, with significant growth in Q2 driven by the optical communication business, achieving a revenue of 426 million yuan, a year-on-year increase of 24.4%, and a net profit of 30 million yuan, a decrease of 4.4% [1]. - In Q2 2024, the company reported a revenue of 261 million yuan, a year-on-year increase of 42.1% and a quarter-on-quarter increase of 63.0%, with a net profit of 24 million yuan, a year-on-year increase of 47.0% and a quarter-on-quarter increase of 267.2% [1]. - The growth is attributed to the company's proactive market expansion and new customer development, particularly in the AI-driven high-growth optical communication market [1]. - The company is strengthening its layout in the data communication field, focusing on capturing significant development opportunities in the optical communication sector, with new products launched for AI applications [1]. - The company is expected to benefit from the growth in demand for optical devices driven by AI and the accelerated development of the lidar sector [1]. Financial Summary - The company forecasts net profits of 90 million yuan, 135 million yuan, and 205 million yuan for 2024, 2025, and 2026 respectively, with corresponding PE multiples of 91x, 61x, and 40x [2][4]. - Revenue projections for the next three years are 979 million yuan in 2024, 1.29 billion yuan in 2025, and 1.675 billion yuan in 2026, with growth rates of 37.8%, 31.7%, and 30.0% respectively [2][4]. - The gross margin is expected to improve gradually, reaching 36.49% by 2026 [4].