First(SH:603806) ZHONGTAI SECURITIES·2024-08-27 07:14Investment Rating - The report assigns a rating of "Buy" for the company, indicating a positive outlook for future performance [2]. Core Views - The company is expected to achieve revenue growth from 22,589 million in 2023 to 23,303 million in 2024, reflecting a year-over-year increase of approximately 3% [2]. - The earnings per share (EPS) is projected to rise from 0.71 in 2024 to 0.93 in 2025, indicating a positive trend in profitability [6]. - The report highlights a significant increase in net profit margin, expected to reach 18.1% in Q2 2024, up from 16.7% in Q2 2023 [5]. Financial Summary - Revenue is forecasted to grow from 18,877 million in 2022 to 33,029 million by 2026, representing a compound annual growth rate (CAGR) of approximately 18% [2]. - The company's price-to-earnings (P/E) ratio is projected to decrease from 19.7 in 2024 to 12.6 by 2026, suggesting improved valuation attractiveness [6]. - The report anticipates a steady increase in return on equity (ROE), expected to rise from 11.1% in 2024 to 13.5% in 2026 [6]. Profitability Metrics - The gross profit margin is expected to stabilize around 28.1% in 2024, with a slight increase to 26.4% by 2026 [6]. - Operating income is projected to grow from 2,761 million in 2024 to 3,774 million in 2025, indicating strong operational efficiency [6]. - The net profit is expected to increase significantly, from 1,850 million in 2024 to 2,896 million in 2026, reflecting robust growth in profitability [6].