donghua test(SZ:300354) Huachuang Securities·2024-08-20 11:11Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 44.90 CNY, compared to the current price of 29.55 CNY [1]. Core Insights - The company reported a revenue of 276 million CNY for the first half of 2024, representing a year-on-year increase of 37.75%, and a net profit attributable to shareholders of 74 million CNY, up 65.11% year-on-year [1]. - The second quarter of 2024 continued the rapid growth trend, with revenue of 172 million CNY, a 33.6% increase year-on-year, and a net profit of 47 million CNY, up 35.3% year-on-year [1]. - Gross margin and net margin remained at favorable levels, with the first half of 2024 showing a gross margin of 66% and a net margin of 26.9% [1]. - The company is optimistic about domestic substitution and the increasing penetration of PHM (Prognostics and Health Management) systems, driven by modernization and intelligence requirements in weaponry and equipment [1]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 603 million CNY, 796 million CNY, and 1,017 million CNY, respectively, with year-on-year growth rates of 59.3%, 32.1%, and 27.8% [2]. - The projected net profits for the same years are 188 million CNY, 249 million CNY, and 326 million CNY, with growth rates of 114.5%, 32.4%, and 30.7% [2]. - The earnings per share (EPS) are expected to be 1.36 CNY, 1.80 CNY, and 2.35 CNY for 2024, 2025, and 2026, respectively [2].