Suntak(SZ:002815) Great Wall Securities·2024-08-21 12:40Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [13]. Core Insights - The company has experienced a slight decline in revenue and net profit in the first half of 2024, with revenue at 2.926 billion yuan, a year-on-year increase of 1.62%, and net profit at 236 million yuan, a year-on-year decrease of 22.99% [1][2]. - The company is focusing on optimizing its product structure, with high-end PCB products now accounting for over 60% of total revenue, driven by significant growth in IC substrates, which saw a 90.16% year-on-year increase [2]. - The company is increasing its R&D investment, with 166 million yuan spent in the first half of 2024, a 3.86% increase year-on-year, to enhance its competitive edge in high-tech products, particularly in the 5G application sector [2]. Financial Summary - The company's projected net profits for 2024-2026 are 473 million, 551 million, and 649 million yuan, respectively, with corresponding EPS of 0.43, 0.50, and 0.59 yuan [5]. - Revenue is expected to grow from 6.305 billion yuan in 2024 to 7.770 billion yuan in 2026, reflecting a compound annual growth rate (CAGR) of approximately 11.4% [1][5]. - The company's P/E ratio is projected to decrease from 19 times in 2024 to 14 times in 2026, indicating a potential increase in valuation as earnings grow [5][8].