CFMEE(SH:688630) Guotou Securities·2024-08-27 07:04Investment Rating - The report maintains a "Buy-A" rating for the company with a target price of 74.85 CNY, corresponding to a 38x PE for 2024 [5][6]. Core Views - The company reported a revenue of 450 million CNY for H1 2024, representing a 41% year-on-year increase, and a net profit of 100 million CNY, up 38.6% year-on-year [1]. - In Q2 2024, the company achieved a revenue of 250 million CNY, a 55% increase year-on-year, with a net profit of 60 million CNY, also up 56% year-on-year. The gross margin for Q2 was 40.3%, impacted by accounting changes, but would have been 48.2% under previous accounting standards [2]. - The company is benefiting from the transfer of PCB production lines to Southeast Asia, with successful equipment sales to countries like Thailand and Vietnam, indicating strong overseas market expansion [3]. - The company is diversifying into advanced applications in the semiconductor sector, making progress in IC substrates and advanced packaging, with successful client collaborations and technology validation [4]. Financial Summary - Revenue projections for 2024-2026 are 1.18 billion CNY, 1.56 billion CNY, and 2.03 billion CNY, with year-on-year growth rates of 42.0%, 32.4%, and 30.1% respectively [6][8]. - Net profit forecasts for the same period are 260 million CNY, 360 million CNY, and 510 million CNY, with growth rates of 44.4%, 40.8%, and 41.0% respectively [6][8]. - The company’s PE ratios for 2024-2026 are projected at 27.8, 19.8, and 14.0 times [6][8].