Piotech (SH:688072) Guotou Securities·2024-08-29 02:13Investment Rating - The investment rating for the company is "Buy-A" with a target price of 157.41 CNY, while the current stock price is 123.00 CNY as of August 28, 2024 [6][12]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 1.267 billion CNY, a year-on-year increase of 26.22%, and net profit of 129 million CNY, a year-on-year increase of 3.64% [4][5]. - In Q2 2024, the company achieved a revenue of 795 million CNY, a year-on-year increase of 32.22% and a quarter-on-quarter increase of 68.53%, with net profit reaching 119 million CNY, a year-on-year increase of 67.43% and a quarter-on-quarter increase of 1032.79% [4][5]. - The company has a strong order backlog, with contract liabilities increasing by 47% quarter-on-quarter to 2.038 billion CNY, indicating robust demand for its products [5][6]. Financial Performance Summary - For H1 2024, the company reported R&D expenses of 314 million CNY, accounting for 24.81% of revenue, reflecting a commitment to innovation and product development [6][12]. - The company expects revenue growth to continue, projecting revenues of 4.058 billion CNY, 5.275 billion CNY, and 6.593 billion CNY for 2024, 2025, and 2026 respectively, with net profits of 826.6 million CNY, 1.0076 billion CNY, and 1.3955 billion CNY for the same years [12][15]. - The company has maintained a high level of R&D investment, focusing on new products and processes, which have been validated by clients and are contributing to industrial applications [6][11].