OPTOWIDE(SH:688195) Huafu Securities·2024-09-10 07:30Investment Rating - The report maintains a "Hold" rating for the company, indicating that the stock is expected to perform in line with the market benchmark over the next 6 to 12 months [3][13]. Core Insights - The company, Tengjing Technology (688195.SH), reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 212 million yuan, up 26.77% year-on-year, and net profit of 33 million yuan, up 60.98% year-on-year [1]. - The demand for high-speed optical communication components is improving, driven by AI computing power, which has led to rapid growth in the company's performance [1]. - The gross margin for the first half of 2024 was 36.9%, an increase of 10.24 percentage points compared to the previous year, reflecting the company's successful expansion in the optical communication business [1]. - The company is focusing on high-end product development, with R&D expenses increasing by 45.29% year-on-year to 22.27 million yuan in the first half of 2024 [1]. - The acquisition of GouMax and the establishment of a factory in Thailand are part of the company's strategy to enhance its overseas order fulfillment capabilities [1]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 212 million yuan and a net profit of 33 million yuan, with a gross margin of 36.9% [1]. - The revenue for Q2 2024 alone was 118 million yuan, showing a year-on-year increase of 32.12%, while net profit for the same period was 22 million yuan, up 55.74% year-on-year [1]. - The company forecasts revenues of 481 million yuan, 657 million yuan, and 871 million yuan for 2024, 2025, and 2026 respectively, with net profits expected to be 77 million yuan, 103 million yuan, and 136 million yuan for the same years [1][5].