SIGLENT(SH:688112) Guotou Securities·2024-09-02 06:00Investment Rating - The report maintains a "Buy-A" rating for Dingyang Technology, with a target price of 27.9 CNY per share, representing a 30x dynamic P/E ratio for 2024 [6][10]. Core Insights - Dingyang Technology reported a revenue of 224 million CNY for the first half of 2024, a year-on-year decrease of 4.74%. The net profit attributable to shareholders was 58 million CNY, down 29.93% year-on-year [3][4]. - The company's high-end product strategy is showing positive results, with the average price of its four main products increasing by 8.3%. Products priced above 30,000 CNY grew by 15.7%, and those above 50,000 CNY increased by 36.1% [4]. - A new stock incentive plan was announced, targeting 101 key personnel, which reflects the company's confidence in future growth, particularly in high-end products [5]. Financial Performance Summary - Revenue and profit for the first half of 2024 were impacted by macroeconomic conditions, with some clients delaying or canceling orders for electronic measuring instruments. Additionally, the inventory pressure faced by distributors contributed to the revenue decline [4]. - R&D expenses increased by 30.6%, and sales expenses rose by 17.1%, negatively impacting the net profit margin by approximately 8.8 percentage points [4]. - The gross profit margin improved to 62% in the first half of 2024, up 1.04 percentage points from the same period in 2023, benefiting from the high-end product strategy [4]. Future Projections - Revenue projections for Dingyang Technology are estimated at 536 million CNY, 669 million CNY, and 818 million CNY for 2024, 2025, and 2026, respectively. Net profits are expected to be 148 million CNY, 196 million CNY, and 250 million CNY for the same years [6][11].