RIGOL(SH:688337) Guotou Securities·2024-09-02 07:00Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 28.8 CNY, compared to the current stock price of 25.19 CNY [5]. Core Views - The company experienced pressure on its performance in the first half of 2024, with revenue of 307 million CNY, a year-on-year decrease of 1.24%, and a net profit of 8 million CNY, down 83.4% year-on-year. The decline is attributed to macroeconomic conditions and delayed purchases from domestic clients [2][3]. - Despite short-term challenges, the long-term trend towards high-end products remains a growth driver, with high-resolution oscilloscopes showing a significant sales increase of 201.29% year-on-year [2][3]. - The company has made substantial investments in R&D, with a research expense ratio of 28.63%, up 7.72 percentage points from the same period in 2023, which has impacted short-term profitability [2][3]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 307 million CNY, a decrease of 1.24% year-on-year, and a net profit of 8 million CNY, down 83.4% year-on-year. The adjusted net profit was -18 million CNY, a decline of 177.8% [2][3]. - The gross margin for the first half of 2024 was 56.7%, an increase of 1.07 percentage points compared to the same period last year [2]. Market Trends - The company is witnessing a recovery in revenue, with July 2024 showing a year-on-year increase of at least 33.81%. This suggests an initial sign of a performance turnaround [3]. - The launch of the new flagship oscilloscope series, DS80000, is expected to drive growth starting in 2024, as it offers advanced specifications that set new performance benchmarks for domestic oscilloscopes [3]. Strategic Developments - The acquisition of a 32.25% stake in Naisou Electronics, which specializes in digital array systems, is expected to create significant synergies and enhance the company's capabilities in high-end applications [4]. - The company aims to expand its customer base by targeting high-quality clients, including research institutions, which will facilitate the introduction of high-end products in various advanced fields [8]. Future Projections - Revenue projections for 2024-2026 are estimated at 764 million CNY, 914 million CNY, and 1.12 billion CNY, respectively, with net profits expected to be 89 million CNY, 123 million CNY, and 174 million CNY [9][10].