donghua test(SZ:300354) Guoyuan Securities·2024-08-28 00:03Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% compared to the benchmark index [4]. Core Views - The company reported a revenue of 276 million yuan for the first half of 2024, representing a year-on-year growth of 37.75%, and a net profit attributable to shareholders of 74 million yuan, up 65.11% year-on-year [2]. - The company is benefiting from domestic substitution and policies encouraging upgrades, leading to robust revenue growth across various business segments [2]. - The gross margin for the first half of 2024 was 66.00%, with a slight year-on-year decrease of 0.03 percentage points, indicating stable profitability [2]. - The company is expanding its product matrix and market reach, particularly in both military and civilian sectors, enhancing its competitive edge [2]. Financial Performance - Revenue projections for 2024-2026 are estimated at 626 million, 833 million, and 1,055 million yuan, respectively, with net profits expected to be 181 million, 250 million, and 322 million yuan [3]. - The earnings per share (EPS) are forecasted to be 1.31, 1.80, and 2.33 yuan for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (P/E) ratios of 21.56, 15.65, and 12.12 [3][4]. - The company’s return on equity (ROE) is projected to improve from 20.30% in 2024 to 24.56% in 2026, reflecting enhanced profitability [3]. Business Expansion - The company has launched new products, including impact pulse sensors and three-axis impact acceleration sensors, to diversify its offerings [2]. - The subsidiary has completed the development of customized multi-dimensional force/torque sensor calibration devices, which have received CNAS accreditation, allowing for third-party testing services [2]. - The company is actively expanding into civilian markets such as water engineering, port machinery, and wind power, alongside its defense sector initiatives [2].