Focus Tech.(SZ:002315) Soochow Securities·2024-09-02 05:01Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1][3]. Core Insights - The company has shown steady growth in revenue and profit, with a 7.40% year-on-year increase in revenue for H1 2024, reaching 794 million yuan, and a 23.18% increase in net profit, amounting to 234 million yuan [2]. - The number of paid merchants on the platform has increased, with a total of 25,734 paid members as of Q2 2024, reflecting a 2.86% quarter-on-quarter growth [2]. - The company is undergoing active reforms, which are expected to lead to a turning point in its performance [1]. - New AI products are anticipated to be launched, which could significantly expand the user base and revenue potential beyond the current platform limitations [2]. - The decline in tax benefits and a high base from the previous year have contributed to a slowdown in profit growth, but the underlying business performance remains strong [2]. Financial Projections - Revenue projections for 2024-2026 are estimated at 17.66 billion yuan, 21.10 billion yuan, and 24.54 billion yuan respectively, with corresponding net profits of 5.04 billion yuan, 6.61 billion yuan, and 7.84 billion yuan [3]. - The current price-to-earnings (P/E) ratios are projected to be 15.98, 12.17, and 10.27 for the years 2024, 2025, and 2026 respectively, indicating the company is undervalued compared to its growth potential [3].