T&S(SZ:300570) Minsheng Securities·2024-08-22 08:00Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company achieved significant year-on-year and quarter-on-quarter growth in Q2 2024, driven by AI demand for dense connectivity products, with revenue reaching 5.10 billion yuan in the first half of 2024, a 30.6% increase year-on-year [1]. - The company is positioned as one of the largest manufacturers of dense connectivity products globally, with a strong competitive advantage in fiber optic connector products, and is expected to benefit from the growing demand for data communication products driven by AI [1][2]. - The company has been focusing on R&D investments, with R&D expense ratios of 5.6%, 7.2%, 6.3%, and 7.2% for the years 2021 to the first half of 2024, which supports its ability to capture future AI development opportunities [1]. Financial Summary - In Q2 2024, the company reported revenue of 2.87 billion yuan, a 43.0% increase year-on-year and a 28.3% increase quarter-on-quarter, with a net profit of 480 million yuan, reflecting an 11.1% year-on-year increase and a 50.4% quarter-on-quarter increase [1]. - The company's revenue from exports in the first half of 2024 was 3.98 billion yuan, a 34.0% increase year-on-year, accounting for 78.0% of total revenue, with North America contributing 3.60 billion yuan [1]. - The projected net profits for the company from 2024 to 2026 are 300 million yuan, 448 million yuan, and 543 million yuan, respectively, with corresponding PE multiples of 23, 15, and 12 [2][4].