Highlander(300065) 东吴证券·2024-09-03 00:30Investment Rating - The report upgrades the investment rating of the company to "Buy" [1][3] Core Views - The company reported a significant increase in net profit attributable to shareholders, with a year-on-year growth of 87.91% in the first half of 2024, despite a 50.26% decline in total revenue [1][2] - The company has improved its profitability through cost control, achieving a gross margin of 34.84%, which is an increase of 18.40 percentage points year-on-year [2] - The company is focusing on the synergy between its smart navigation and marine business, enhancing its technological advantages and exploring new digital economy opportunities [2] Financial Performance Summary - Total revenue for the first half of 2024 was 158 million, down from the previous year, while net profit attributable to shareholders was 13 million, showing a substantial increase [1][2] - The operating cash flow improved, with a net cash flow from operating activities of -28 million, an increase of 64.81% year-on-year [2] - The company has reduced accounts receivable by 19.34% to 363 million, mitigating bad debt risks [2] Earnings Forecast and Valuation - The company’s projected net profits for 2024, 2025, and 2026 are 77 million, 138 million, and 163 million respectively, with corresponding P/E ratios of 59, 33, and 28 [3] - The report anticipates a recovery in the underwater observation network, which is expected to develop in a compensatory manner due to the current limited national investment in marine disaster prevention [3]