OKE(SH:688308) Huachuang Securities·2024-09-02 05:23Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 24.15 CNY, compared to the current price of 16.05 CNY [1]. Core Views - The company's revenue for the first half of 2024 reached 579 million CNY, a year-on-year increase of 8.75%, while net profit attributable to shareholders was 60 million CNY, down 44.58% year-on-year [1]. - The growth in revenue is attributed to increased exports and new project contributions, while the decline in profit is due to rising operating costs, increased financial and R&D expenses, and raw material price hikes [1]. - The demand for cutting tools is expected to rise as manufacturing activity improves, with a significant price gap between domestic and international products [1]. - The company is expanding its end-user solutions and application scenarios, particularly in high-end markets such as automotive, aerospace, and wind energy [1]. - The overseas sales have shown significant growth, with a compound annual growth rate (CAGR) of 32.73% from 2017 to 2023, and a 94.67% year-on-year increase in overseas sales revenue in the first half of 2024 [1]. Financial Summary - The projected revenues for 2024, 2025, and 2026 are 1.284 billion CNY, 1.554 billion CNY, and 1.899 billion CNY, respectively, with corresponding net profits of 166 million CNY, 258 million CNY, and 361 million CNY [2]. - The earnings per share (EPS) are expected to be 1.05 CNY for 2024, 1.62 CNY for 2025, and 2.27 CNY for 2026 [2]. - The company’s total assets are projected to grow from 3.88 billion CNY in 2023 to 4.938 billion CNY by 2026 [2].