ZHENHUA(000733) 民生证券·2024-08-24 10:30Investment Rating - The report maintains a "Recommend" rating for Zhenhua Technology (000733 SZ) [1][2] Core Views - 2Q24 shows significant quarter-over-quarter improvement in performance, with revenue increasing 39 6% QoQ to 1 416 billion yuan and net profit attributable to parent company surging 212 1% QoQ to 318 million yuan [1] - The company is focusing on strengthening and optimizing its main business, implementing a "Quality and Return Dual Improvement" strategy [1] - Zhenhua Technology is a domestic leader in special electronic components, with multiple fixed asset investment projects underway to promote intelligent and digital transformation [1] Financial Performance - 1H24 revenue was 2 43 billion yuan, down 43 6% YoY, while net profit attributable to parent company was 420 million yuan, down 72 5% YoY [1] - 1H24 gross margin decreased by 11 7 percentage points to 50 8%, and net margin dropped by 18 2 percentage points to 17 3% [1] - Operating cash flow in 1H24 was 1 191 billion yuan, a 122% YoY increase [1] Subsidiary Performance - Zhenhua Yongguang (semiconductor discrete devices): 1H24 revenue of 610 million yuan, down 45 8% YoY; net profit of 265 million yuan, down 49 4% YoY [1] - Zhenhua Yunkai (chip electronic components): 1H24 revenue of 334 million yuan, down 49 0% YoY; net profit of 77 million yuan, down 75 9% YoY [1] - Zhenhua Fu (laminated chip inductors): 1H24 revenue of 262 million yuan, down 52 4% YoY; net profit of 43 million yuan, down 83 9% YoY [1] Financial Forecasts - 2024-2026 net profit attributable to parent company forecast: 1 215 billion yuan, 1 510 billion yuan, and 1 813 billion yuan respectively [1][2] - 2024-2026 PE ratios: 17x, 13x, and 11x respectively [1][2] - 2024-2026 revenue growth rates: -36 8%, 19 3%, and 17 9% respectively [2][5] Financial Ratios - 2024-2026 gross margins: 48 20%, 49 15%, and 49 71% respectively [5] - 2024-2026 net profit margins: 24 70%, 25 73%, and 26 20% respectively [5] - 2024-2026 ROE: 7 81%, 8 85%, and 9 60% respectively [5]