GLARUNTECH(SH:600562) Minsheng Securities·2024-08-24 03:36Investment Rating - The report maintains a "Recommended" rating for the company, considering its leading position in the radar market and potential for reform [1][3]. Core Viewpoints - The company achieved a revenue of 1.559 billion yuan in 1H24, with a year-over-year growth of 0.01%, and a net profit attributable to shareholders of 346 million yuan, reflecting a 3.1% increase year-over-year [1]. - The radar segment continues to show steady growth, with the company making significant breakthroughs in international market expansion [1]. - The company has increased its R&D investment in the radar segment, with R&D expenses rising by 29.1% to 72 million yuan in 1H24 [1]. Financial Performance Summary - In 2Q24, the company reported a revenue of 999.6 million yuan, a year-over-year increase of 1.1% and a quarter-over-quarter increase of 77.3% [1]. - The gross margin for 1H24 improved by 6.5 percentage points to 41.4%, while the net margin reached a historical high of 22.2% since 2005 [1]. - The radar systems and subsystems generated a revenue of 1.185 billion yuan in 1H24, marking a year-over-year increase of 12.21% [1]. - The company’s net cash flow from operating activities was -361 million yuan in 1H24, compared to -224 million yuan in 1H23 [1]. Profit Forecast - The company’s projected net profits for 2024, 2025, and 2026 are 660 million yuan, 821 million yuan, and 988 million yuan, respectively [2][4]. - The current stock price corresponds to a price-to-earnings ratio (PE) of 23x for 2024, 19x for 2025, and 16x for 2026 [1][4]. Market Position and Strategy - The company is recognized as a key player in China's radar market, with a comprehensive product lineup and ongoing efforts to strengthen its traditional market while exploring new business areas [1]. - The report highlights the company’s successful acquisition of new orders in the international market, indicating a positive outlook for future growth [1].