T&S(SZ:300570) Great Wall Securities·2024-08-28 10:18Investment Rating - The report maintains a rating of "Accumulate" for the company, indicating an expected stock price increase of 5% to 15% relative to the industry index over the next six months [11]. Core Views - The company achieved a steady revenue growth of 30.60% year-on-year in H1 2024, with a net profit increase of 10.96% [2][3]. - The demand for optical communication products is expected to grow significantly, driven by the deployment of AI computing resources and the acceleration of network infrastructure construction [3]. - The company is focusing on enhancing its production efficiency and reducing costs through digital management systems, which is expected to improve its market share in the optical communication industry [3][4]. Financial Performance Summary - In H1 2024, the company reported revenue of 510 million yuan, with a year-on-year growth of 30.60%. The net profit attributable to shareholders was 80 million yuan, reflecting a year-on-year increase of 10.96% [2]. - The gross margin for H1 2024 was 31.83%, an increase of 2.22 percentage points year-on-year, while the net margin was 15.83%, a decrease of 2.02 percentage points year-on-year [3]. - The company’s revenue is projected to grow from 1,242 million yuan in 2024E to 2,260 million yuan in 2026E, with net profit expected to rise from 226 million yuan in 2024E to 455 million yuan in 2026E [5][4]. Market Outlook - The global AI market is projected to grow from approximately 196.63 billion USD in 2023 to 1.81 trillion USD by 2030, with a CAGR of about 37.3% from 2024 to 2030 [4]. - The company is well-positioned to benefit from the increasing demand for high-speed optical modules, particularly in the context of AI training and inference servers [4]. - The company has successfully integrated its MT connector into the supply chain of significant overseas clients, indicating potential for further growth [4].