Sansec(SH:688489) INDUSTRIAL SECURITIES·2024-09-16 02:13Investment Rating - The report maintains an "Accumulate" rating for the company [3]. Core Viewpoints - The company achieved a revenue of 169 million yuan in H1 2024, representing a year-on-year growth of 63.48%, and a net profit attributable to shareholders of 14 million yuan, up 35.21% year-on-year [3]. - The revenue growth is attributed to significant increases in procurement from major clients like Huawei, effective expansion in sectors such as healthcare, telecommunications, and electricity, and the consolidation of Jiangnan Keyou into the company's financials [3]. - The company has improved cash flow management, with operating cash flow improving from -28 million yuan in the previous year to -22 million yuan in H1 2024 [3]. - Increased sales investment led to a rise in gross margin, with a comprehensive gross margin of 76.83% in H1 2024, up 5.91 percentage points year-on-year [3]. Financial Summary - Revenue projections for 2023 to 2026 are 359 million, 465 million, 587 million, and 719 million yuan respectively, with year-on-year growth rates of 5.5%, 29.6%, 26.3%, and 22.4% [2]. - Net profit attributable to shareholders is forecasted to be 67 million, 92 million, 113 million, and 139 million yuan for the same years, with growth rates of -37.3%, 37.0%, 23.0%, and 22.7% respectively [2]. - The company's gross margin is expected to decline slightly from 73.2% in 2023 to 71.9% in 2026 [2]. - Return on equity (ROE) is projected to improve from 3.5% in 2023 to 6.4% in 2026 [2].