Dingtong(SH:688668) Great Wall Securities·2024-08-22 06:39Investment Rating - The report maintains a "Buy" rating for the company, expecting the stock price to outperform the industry index by over 15% in the next six months [12]. Core Insights - The company has experienced revenue and profit growth in the first half of 2024, with revenue reaching 452 million yuan, a year-on-year increase of 36.12%, and a net profit attributable to shareholders of 49.3 million yuan, up 9.50% year-on-year [1][2]. - The recovery in the communications market is driven by increased demand for AI computing power, leading to a rise in direct orders and steady performance growth for the company [2]. - The company has increased its R&D investment, with R&D expenses amounting to 39.98 million yuan in the first half of 2024, a year-on-year increase of 14.84%, representing a R&D expense ratio of 8.84% [3]. Financial Performance Summary - In 2024, the company is projected to achieve a revenue of 901 million yuan, with a year-on-year growth rate of 32.0%, and a net profit of 95 million yuan, reflecting a growth rate of 42.8% [1][8]. - The gross profit margin for the first half of 2024 is reported at 27.56%, a decrease of 2.53% year-on-year, attributed to increased competition in the electric vehicle market [2]. - The company’s earnings per share (EPS) for 2024 is expected to be 0.69 yuan, with projections of 0.92 yuan and 1.23 yuan for 2025 and 2026, respectively [5][8]. Market and Product Development - The company is actively diversifying its product offerings, including the development of new products such as the QSFP-DD/QSFP 112G series, which has begun mass production [3]. - The automotive connector business is expected to grow steadily as the company adjusts its product structure to phase out loss-making products [2]. - The company’s production capacity for 112G and 56G cage products is gradually increasing, with a focus on high-precision and compact designs [3].