Investment Rating - The investment rating for the company is "Add" [2][3] Core Views - The company's revenue for Q2 2024 reached 547 million yuan, representing a year-on-year increase of 14.74% and a quarter-on-quarter increase of 17.03%. The net profit attributable to the parent company was 229 million yuan, up 22.33% year-on-year and 104.41% quarter-on-quarter [3] - The company's profitability has significantly improved, with a gross margin of 53.17% in Q2 2024, an increase of 11.78 percentage points quarter-on-quarter, and a net profit margin of 42.17%, up 18.86 percentage points quarter-on-quarter. This improvement is attributed to the company's technological innovation and smart manufacturing advantages [3] - The company is expected to benefit from an upward cycle in its electric meter business, with charging pile and energy IoT businesses anticipated to become new growth points. Projected net profits for 2024-2026 are 629 million, 728 million, and 870 million yuan, respectively, corresponding to valuations of 12.0, 10.3, and 8.7 based on the closing price on September 13 [3][4] Financial Summary - The company's operating revenue is projected to grow from 1,771 million yuan in 2023 to 2,907 million yuan in 2026, with year-on-year growth rates of 17.6%, 23.1%, 13.2%, and 17.8% for the respective years [2] - The net profit attributable to the parent company is expected to increase from 607 million yuan in 2023 to 870 million yuan in 2026, with growth rates of 28.6%, 3.6%, 15.8%, and 19.5% [2] - The gross margin is projected to decline slightly from 44.8% in 2023 to 43.1% in 2026, while the return on equity (ROE) is expected to remain stable around 15.9% to 16.3% during the same period [2][3]
炬华科技:电表周期向上,营收和利润稳定增长