SOKAN(SH:688157) Huachuang Securities·2024-09-09 12:08Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 46 CNY per share, compared to the current price of 38.87 CNY [1][2]. Core Insights - The company reported a revenue of 323 million CNY for H1 2024, representing a year-on-year increase of 31.51%, and a net profit attributable to shareholders of 41 million CNY, up 52.38% year-on-year. In Q2 alone, revenue reached 188 million CNY, growing 24.04% year-on-year and 39.13% quarter-on-quarter [1][2]. - The consumer electronics segment was the main contributor to revenue growth, with the 3C sector achieving a revenue of 271 million CNY in H1 2024, a 35.67% increase year-on-year. Notably, the wearable devices business saw a significant growth of 77.32% year-on-year [2]. - The company has implemented share buybacks, stock incentive plans, and consistent dividends, reflecting strong confidence in its future performance. As of June 30, 2024, the company had repurchased 426,900 shares, accounting for 0.38% of its total share capital [2]. - The company is increasing its R&D investment, with a research expense ratio of 14.75% in H1 2024, aiming to expand its product range and applications across various sectors [2]. Financial Summary - The company forecasts revenues of 818 million CNY, 1.061 billion CNY, and 1.385 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 38.6%, 29.8%, and 30.5% [3][6]. - The net profit attributable to shareholders is projected to be 129 million CNY, 150 million CNY, and 207 million CNY for the same years, with growth rates of 59.0%, 16.2%, and 37.8% respectively [3][6]. - The current price-to-earnings (P/E) ratios are 34, 29, and 21 for the years 2024, 2025, and 2026 [3][6].