Hwa Create(300045) 民生证券·2024-08-20 14:38Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Insights - The company achieved significant performance improvement in Q2 2024, with revenue of 367 million yuan, a year-on-year increase of 66.18%, and a net profit of 2.83 million yuan, up 123.06% year-on-year [1] - In Q2 2024, the company reported a revenue of 194 million yuan, representing a year-on-year growth of 48.51% and a quarter-on-quarter increase of 11.33%, primarily driven by the rapid growth in satellite navigation and simulation testing product revenues [1] - The gross profit margin for Q2 2024 reached 37.70%, an increase of 1.54 percentage points compared to the same period last year, indicating improved profitability [1] - The Chinese government is actively supporting the development of the Beidou industry, with expectations for accelerated large-scale applications, particularly in key sectors by 2025 [1] - The satellite internet infrastructure is continuously improving, opening up market opportunities, with the completion of the Tian Tong satellite mobile communication system, which enhances mobile communication services in various regions [1] - The company is well-positioned to benefit from the growth in the satellite application industry, having developed several satellite communication navigation baseband chips and mastering core design technologies [1] Financial Forecasts - The company is projected to achieve revenues of 967 million yuan, 1.29 billion yuan, and 1.71 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 40 million yuan, 75 million yuan, and 113 million yuan [2][5] - The expected price-to-earnings (PE) ratios for 2024, 2025, and 2026 are 277X, 146X, and 97X respectively [2][5]