Starry(SH:603520) Huachuang Securities·2024-08-23 06:42Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 11 CNY, compared to the current price of 8.38 CNY [1]. Core Views - The company's H1 2024 performance met expectations, with revenue of 1.33 billion CNY (+22.75%) and a net profit of 23 million CNY (-35.09%) [1]. - The contrast in performance between Q1 and Q2 2024 shows a revenue increase in Q2 to 688 million CNY (+32.86%), but a significant drop in net profit to 11 million CNY (-58.71%) [1]. - The company continues to strengthen its competitive advantage in the contrast agent business, with H1 2024 contrast agent revenue reaching 1.068 billion CNY (+20.3%) [1]. - The domestic formulation business is experiencing growth due to centralized procurement, achieving sales of 297 million CNY (+27.4%) in H1 2024 [1]. - The company is also expanding its overseas market presence, leveraging its dual-platform strategy in Shanghai and Ireland [1]. - The iodine price has seen a slight rebound, impacting profit margins, but future trends suggest a potential decline in iodine prices due to increased supply [1]. Financial Summary - The company forecasts net profits of 156 million CNY, 313 million CNY, and 440 million CNY for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 253.6%, 100.3%, and 40.6% [1][2]. - The projected PE ratios for 2024, 2025, and 2026 are 23, 12, and 8 times, respectively [2]. - The total revenue is expected to grow from 2.508 billion CNY in 2024 to 3.980 billion CNY in 2026, with corresponding growth rates of 14.2%, 26.6%, and 25.4% [2].