CCTC(SZ:300408) Guotou Securities·2024-08-31 03:03Investment Rating - The investment rating for the company is maintained at Buy-A with a target price of 33.60 CNY, corresponding to a dynamic P/E ratio of 30.00x for 2024 [6][7]. Core Views - The company has shown significant sales growth driven by demand recovery, with a 30.36% year-on-year increase in revenue for H1 2024, reaching 3.427 billion CNY, and a 40.26% increase in net profit, amounting to 1.026 billion CNY [3]. - The electronic component materials business has experienced rapid growth, with revenue of 1.444 billion CNY in H1 2024, reflecting a 56.71% year-on-year increase, supported by improved utilization rates and stabilized product prices [4]. - The communication industry is evolving rapidly, and the company is adapting its product strategy accordingly, achieving a revenue of 1.221 billion CNY in optical communication components for H1 2024, which is a 30.99% year-on-year increase [5]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 1.864 billion CNY, a year-on-year increase of 29.42% and a quarter-on-quarter increase of 19.20%. The net profit for the same quarter was 593 million CNY, up 44.12% year-on-year and 36.86% quarter-on-quarter [3]. - The gross profit margin for Q2 2024 was 43.37%, which is an increase of 3.38 percentage points year-on-year and 3.23 percentage points quarter-on-quarter [3]. Business Segments - The electronic component materials segment is expected to benefit from industry recovery, with continuous development in MLCC products towards miniaturization, high capacitance, high frequency, high reliability, and high voltage [4]. - The company is enhancing its R&D capabilities with the construction of research institutes in Chengdu and Suzhou, which is expected to lead to innovative product offerings and solutions for customers [5]. Future Projections - Revenue growth rates are projected at 29.17%, 33.35%, and 20.05% for 2024 to 2026, while net profit growth rates are expected to be 36.09%, 28.33%, and 21.48% for the same period [6].