HMD(SZ:002947) Huachuang Securities·2024-08-23 05:07Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 62.4 CNY [1][2]. Core Insights - The company's performance in the first half of 2024 showed significant growth, with revenue reaching 941 million CNY, a year-over-year increase of 41.22%. The net profit attributable to shareholders was 164 million CNY, reflecting an 85.54% increase year-over-year [1][2]. - The growth is driven by the company's dual business model, focusing on die-cutting and the expansion of Huayangtong's services, particularly in the AI and communication sectors [1][2]. - The company has established a strong position as a key supplier for major clients, including Apple and Google, and is expected to benefit from the ongoing upgrade cycles in consumer electronics [1][2]. Financial Performance Summary - For the first half of 2024, the company reported a gross margin of 29.93%, an increase of 2.75 percentage points year-over-year [1]. - The second quarter of 2024 saw revenue of 516 million CNY, a year-over-year increase of 32.73%, with a net profit of 93 million CNY, up 85.19% year-over-year [1]. - The company is projected to achieve a net profit of 500 million CNY in 2024, with significant growth expected in subsequent years, reaching 1.031 billion CNY by 2026 [2]. Business Development and Market Position - The company has made substantial investments in R&D, which has facilitated technological and product innovations, contributing to its robust growth [1][2]. - The die-cutting market is anticipated to expand significantly, driven by the demand for AI-related hardware and the upgrade of consumer electronics [1][2]. - Huayangtong's role as a platform supplier is becoming increasingly prominent, particularly in the server and charging pile sectors, which are expected to see substantial growth [1][2].