T&S(SZ:300570) Guolian Securities·2024-08-24 13:03Investment Rating - The investment rating for the company is "Buy (Maintain)" with a current price of 29.86 CNY [4]. Core Insights - The company reported a net profit attributable to shareholders of 79.51 million CNY for the first half of 2024, representing a year-on-year increase of 10.96%. In Q2 2024, the net profit was 47.77 million CNY, up 11.06% year-on-year and 50.45% quarter-on-quarter [2][6]. - The gross margin for H1 2024 reached 31.83%, an increase of 2.22 percentage points year-on-year. In Q2 2024, the gross margin was 32.55%, up 5.26 percentage points year-on-year and 1.65 percentage points quarter-on-quarter [2][6]. - The company is focusing on in-depth research and development in passive products, active products, and optical sensing products, gradually enriching and upgrading its product line [2][6]. - The construction of the production base in Vietnam is actively progressing, with the wholly-owned subsidiary, Sait Communication Co., Ltd., completing the business registration process [2][6]. Financial Performance Summary - For H1 2024, the company achieved an operating income of 510 million CNY, a year-on-year increase of 30.60%. In Q2 2024, the operating income was 287 million CNY, up 42.99% year-on-year and 28.34% quarter-on-quarter [6]. - The R&D expenses for H1 2024 amounted to 36.86 million CNY, a year-on-year increase of 31.65%. In Q2 2024, R&D expenses were 20.27 million CNY, up 31.44% year-on-year and 22.13% quarter-on-quarter [6]. - The company expects operating revenues for 2024-2026 to be 1.304 billion CNY, 1.694 billion CNY, and 2.200 billion CNY, with year-on-year growth rates of 47.34%, 29.92%, and 29.89%, respectively [6][7]. Valuation Metrics - The company’s earnings per share (EPS) for 2024 is projected to be 1.04 CNY, with a price-to-earnings (P/E) ratio of 28.5 [7]. - The projected net profit for 2024 is 237 million CNY, with a year-on-year growth rate of 52.88% [7].