Zhejiang Dahua Technology (002236) 华创证券·2024-08-27 11:43Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 19.21 CNY, compared to the current price of 13.38 CNY [1]. Core Insights - The company's revenue for the first half of 2024 reached 14.867 billion CNY, a year-on-year increase of 1.59%, while the net profit attributable to shareholders was 1.810 billion CNY, down 8.42% year-on-year [1]. - The overseas business revenue surpassed domestic revenue for the first time, accounting for 50.35% of total revenue, with a growth of 9.08% year-on-year [1]. - The innovative business segment generated 2.461 billion CNY in revenue, reflecting an 8.95% year-on-year increase, contributing 16.55% to total revenue [1]. - The company expects revenue growth of 6.8%, 9.5%, and 10.1% for the years 2024, 2025, and 2026, respectively, with projected net profits of 3.715 billion CNY, 4.305 billion CNY, and 4.974 billion CNY for the same years [1]. Financial Summary - For the first half of 2024, the company reported operating income of 14.867 billion CNY, with a gross margin of 41.27%, down 1.57 percentage points year-on-year [1]. - The total expenses for R&D, sales, and management were 19.01 billion CNY, 22.68 billion CNY, and 5.11 billion CNY, respectively, with a total expense growth of 2.21% year-on-year [1]. - The company’s financial metrics indicate a projected EPS of 1.13 CNY, 1.31 CNY, and 1.51 CNY for 2024, 2025, and 2026, respectively [2].