Sansec(688489) 国投证券·2024-09-03 09:31Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 29.82 CNY, compared to the current stock price of 25.19 CNY as of September 3, 2024 [1]. Core Insights - The company has demonstrated significant revenue growth, achieving 169 million CNY in revenue for H1 2024, a year-on-year increase of 63.48%, with Q2 2024 revenue reaching 120 million CNY, up 78.06% year-on-year [2][3]. - The net profit for H1 2024 was 14 million CNY, reflecting a 35.21% increase year-on-year, with Q2 2024 net profit at 24 million CNY, up 70.05% year-on-year [2][3]. - The company is in a rapid development phase, focusing on both R&D and market expansion, which is expected to open broader growth opportunities with new products and clients [2]. Financial Performance - The company reported a gross margin of 76.83% for H1 2024, an increase of 5.91 percentage points year-on-year, indicating improved product competitiveness [3]. - Sales, management, and R&D expenses increased by 80.26%, 38.02%, and 43.98% respectively, with management and R&D expense growth rates lower than revenue growth, showcasing effective cost control [3]. - Revenue projections for 2024 to 2026 are estimated at 499 million CNY, 590 million CNY, and 690 million CNY respectively, with net profits expected to be 85 million CNY, 116 million CNY, and 139 million CNY [6][7]. Market Position and Strategy - The company is positioned as a vertically integrated player in the commercial encryption industry, with strong R&D capabilities and a focus on high-barrier sectors [5]. - The introduction of new XT and XR series chips is aimed at expanding into the IoT market, targeting applications in energy, healthcare, video security, and vehicle networking [4]. - The company has established partnerships with major cloud service providers, including Huawei Cloud and JD Cloud, to support digital transformation across various sectors [4]. Future Outlook - The company is actively expanding into international markets, with the establishment of a subsidiary in Hong Kong, marking its first step in overseas business [4]. - The anticipated growth trajectory is supported by the company's ongoing investment in quantum-resistant encryption technologies and hardware [4].