GLARUNTECH(SH:600562) AVIC Securities·2024-09-11 11:11Investment Rating - The investment rating for Guirui Technology (600562) is "Buy" with a target price of 18.00 CNY, indicating an expected return of over 10% relative to the CSI 300 index in the next six months [1][19]. Core Insights - The report highlights steady growth in the radar business, with H1 2024 achieving revenue of 1.559 billion CNY, a slight increase of 0.01% year-on-year, and a net profit of 346 million CNY, up 3.14% [1][4]. - The gross margin reached a new high of 41.40%, an increase of 6.52 percentage points, while the net profit margin was 22.17%, up 0.68 percentage points [1][4]. - The company is positioned as a leading provider of radar equipment in China, focusing on radar, industrial software, and smart transportation sectors, with a mission to support national manufacturing and defense innovation [1][6]. Summary by Sections Financial Performance - In H1 2024, Guirui Technology reported revenue of 1.559 billion CNY and a net profit of 346 million CNY, with significant improvements in profitability metrics [1][4]. - Q2 2024 saw revenue of 996 million CNY, a year-on-year increase of 1.07% and a quarter-on-quarter increase of 77.30% [1][4]. - The company’s revenue from radar equipment reached 1.33 billion CNY in H1 2024, marking a 12.21% increase, and accounted for 85.32% of total revenue [4][6]. Business Segments 1. Radar Equipment Business: - Revenue of 1.33 billion CNY in H1 2024, with a net profit contribution from meteorological and air traffic control radar significantly increasing [4][6]. - The company secured large orders in Jiangsu and Shandong provinces for its X-band and L-band radar products [4][6]. 2. Industrial Software and Intelligent Manufacturing: - Revenue decreased to 102 million CNY, down 25.59%, but the segment's revenue share slightly increased [4][6]. - The company successfully bid for multiple digital transformation projects in military repair factories [4][6]. 3. Smart Transportation Business: - Revenue fell to 127 million CNY, a decrease of 46.34%, but the company is expanding its project portfolio in urban rail transit [4][6]. Future Outlook - The company is expected to benefit from its leading position in radar technology and the expansion of its digital economy initiatives [6][9]. - Revenue projections for 2024-2026 are 3.599 billion CNY, 3.974 billion CNY, and 4.374 billion CNY, with net profits of 664 million CNY, 736 million CNY, and 817 million CNY respectively [9][10].