Hygon Information Technology (SH:688041) Orient Securities·2024-08-23 01:38Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company has shown continuous growth in revenue and net profit in the first half of 2024, with revenue reaching 3.76 billion yuan, up 44.1%, and net profit attributable to the parent company at 850 million yuan, up 25.97% [1]. - The company has increased its inventory, indicating stable product supply, with inventory at the end of the period reaching 2.46 billion yuan, compared to 1.07 billion yuan at the end of 2023 [1]. - The company is investing heavily in R&D, with R&D expenses in the first half of 2024 amounting to 1.37 billion yuan, representing 36.46% of total revenue [1]. - The company has a rich ecosystem of industry chain resources, collaborating with over 4,000 related innovative entities to develop more than 12,000 secure and user-friendly products and solutions [1]. Financial Forecast and Investment Recommendations - The forecast for earnings per share (EPS) for 2024-2026 is 0.78 yuan, 1.23 yuan, and 1.63 yuan respectively, with an upward adjustment in revenue and gross margin predictions [2][6]. - The target price is set at 96.79 yuan, based on absolute valuation methods (FCFF) [2][6]. - The company is expected to benefit from the promising prospects of its CPU and DCU products [2][6]. Financial Information Summary - Revenue for 2024 is projected at 8.64 billion yuan, with a year-on-year growth of 43.7% [3]. - The gross profit margin is expected to improve to 60.9% in 2024, up from 59.7% in 2023 [3]. - The net profit margin is projected to remain stable at 21.0% for 2024 [3]. Market Performance - The stock price as of August 22, 2024, is 77.3 yuan, with a 52-week high of 90.13 yuan and a low of 49.24 yuan [4]. - The absolute performance over the past 12 months is 49.45%, outperforming the market benchmark [4].