VEICHI(688698) Minsheng Securities·2024-08-26 13:39Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price on August 26, 2024 [3]. Core Insights - The company reported strong performance in H1 2024, with revenue of 771 million yuan, a year-on-year increase of 23.46%, and a net profit attributable to shareholders of 134 million yuan, up 25.75% year-on-year [1]. - The company is actively expanding its overseas market presence, achieving a 20.99% increase in overseas revenue to 198 million yuan in H1 2024 [1]. - The company is focusing on R&D for new markets, with R&D expenses of 89.72 million yuan in H1 2024 and 69 new patents granted [1]. Financial Performance Summary - For H1 2024, the company achieved a gross margin of 39.47%, an increase of 1.08 percentage points year-on-year, and a net profit margin of 17.16%, up 0.35 percentage points year-on-year [1]. - The company forecasts revenues of 1.795 billion yuan, 2.444 billion yuan, and 3.280 billion yuan for 2024, 2025, and 2026, respectively, with corresponding growth rates of 37.5%, 36.2%, and 34.2% [2][4]. - The projected net profit attributable to shareholders for the same years is 255 million yuan, 344 million yuan, and 459 million yuan, with growth rates of 33.5%, 35.0%, and 33.5% [2][4]. Business Segment Performance - The revenue from frequency converter products reached 493 million yuan, a year-on-year increase of 22.85%, while revenue from servo systems and control systems was 254 million yuan, up 26.55% year-on-year [1]. - The company is enhancing its product offerings, including new servo system products and PLCs to address strategic gaps [1]. R&D and Innovation - The company is committed to high-intensity R&D investment, focusing on key technologies in high-end equipment, robotics, medical devices, and new energy sectors [1]. - The R&D efforts have resulted in the development of advanced solutions for various industries, including robotics and medical applications [1].