Create Century(300083) 民生证券·2024-08-20 12:00Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 5.89 yuan [3]. Core Views - The company achieved a rapid revenue growth of 45.85% year-on-year in H1 2024, reaching 2.06 billion yuan, while the net profit attributable to the parent company decreased by 23% to 158 million yuan [1]. - The company is benefiting from the recovery in the 3C industry and the increasing demand for its flagship drilling and tapping machines, with a year-on-year shipment increase of over 180% in H1 2024 [1]. - The company is actively expanding its overseas market presence, with overseas revenue in 2023 reaching 145 million yuan, a year-on-year increase of 74.84% [1]. Summary by Sections Financial Performance - In H1 2024, the gross margin was 22.96%, a slight decrease of 0.29 percentage points year-on-year, while the net profit margin was 8.01%, down 2.57 percentage points year-on-year [1]. - The company reported a significant increase in contract liabilities by 26.35%, indicating a strong order backlog [1]. - The company’s operating expenses decreased by 9.04% year-on-year, with sales, management, and financial expenses showing reductions of 4.23%, 14.64%, and 5.59% respectively [1]. Market Opportunities - The company is expected to benefit from the recovery in the 3C sector, particularly due to the increasing penetration of titanium alloy frames in mobile devices and the anticipated "AI replacement wave" in smartphones [1]. - The five-axis machine tool segment showed remarkable growth, with revenue from this product line increasing by over 516.21% year-on-year in H1 2024 [1]. - The company is projected to achieve revenues of 4.68 billion yuan, 5.40 billion yuan, and 6.16 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 440 million yuan, 558 million yuan, and 638 million yuan for the same years [2][4].