Hollywave(SH:688682) Soochow Securities·2024-08-26 12:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 124 million yuan in the first half of 2024, a year-on-year decrease of 7.62%. The net profit attributable to the parent company was 6 million yuan, down 46.18% year-on-year [1][2] - The decline in revenue is attributed to significant pressure in downstream market demand, with a decrease in existing orders due to low market conditions in the previous year. New projects have not yet reached the delivery stage [1][2] - The company is focusing on research and innovation in radar simulation, developing a digital radar simulation module to support system-level radar digital models [2] - The company possesses both simulation and measurement algorithm technologies, enhancing its core competitiveness through mutual verification and continuous optimization of algorithms [2] - The profit forecast has been adjusted, with expected net profits for 2024 and 2025 revised to 54 million yuan and 74 million yuan, respectively, with a new forecast for 2026 at 108 million yuan [2] Financial Summary - Total revenue for 2024 is projected to be 442.83 million yuan, with a year-on-year growth rate of 12.33% [1][8] - The net profit attributable to the parent company is expected to be 53.71 million yuan in 2024, reflecting a significant recovery of 98.10% year-on-year [1][8] - The company's earnings per share (EPS) for 2024 is estimated at 0.74 yuan, with a price-to-earnings (P/E) ratio of 37.27 [1][9] - The gross profit margin is expected to improve to 35.77% in 2024, with a net profit margin of 12.13% [8][9]