Sharetronic(SZ:300857) Huachuang Securities·2024-08-27 08:54Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [1][14]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2024, with total revenue reaching 3.578 billion yuan, a year-on-year increase of 95.51%, and net profit attributable to shareholders at 358 million yuan, up 216.58% year-on-year [1]. - The second quarter of 2024 saw revenue of 1.819 billion yuan, a year-on-year increase of 75.92% and a quarter-on-quarter increase of 3.43%, with net profit attributable to shareholders at 196 million yuan, reflecting a year-on-year growth of 191.38% [1]. - The company is experiencing steady performance improvements and optimizing its business structure, driven by increased demand in smart storage, intelligent IoT terminals, and cloud services [1]. Financial Performance Summary - For 2024, the company expects total revenue of 8.199 billion yuan, a 76% increase from 2023, and net profit of 806 million yuan, reflecting a 180.6% increase [3]. - The earnings per share (EPS) is projected to be 3.29 yuan for 2024, with a price-to-earnings (P/E) ratio of 16 [3][4]. - The gross margin is expected to improve to 21.1% in 2024, up from 13.6% in 2023 [4]. Business Development Highlights - The company is expanding its cloud services, including cross-border e-commerce cloud services and cloud computing services, which are expected to enhance its global strategy [1]. - The company has signed significant agreements with major clients, marking a milestone in its cloud service development [1]. - The server remanufacturing business is performing well, with a notable increase in demand for refurbished servers as companies upgrade their equipment to meet AI needs [1].