CASTECH(SZ:002222) Huaxin Securities·2024-09-23 14:10Investment Rating - The report maintains a "Buy" investment rating for the company [2][6]. Core Insights - The company achieved a revenue of 439 million yuan in the first half of 2024, representing a year-on-year growth of 13.07%. However, the net profit attributable to shareholders decreased by 0.63% to 110 million yuan, while the net profit excluding non-recurring items increased by 11.91% to 117 million yuan [2][3]. - The company is focusing on capturing domestic market share amid weak overseas demand, with domestic sales revenue increasing by 24.32% [3]. - The company is a leading global producer of nonlinear optical crystals and laser crystals, actively expanding its product matrix and successfully producing new optical components for 5G communications [4]. - R&D investment increased by 26.84% to 43.51 million yuan in the first half of 2024, with significant advancements in core technology and product innovation [5]. - Revenue forecasts for 2024-2026 are projected at 870 million, 1.132 billion, and 1.303 billion yuan, with corresponding EPS of 0.50, 0.61, and 0.74 yuan, indicating a positive growth outlook [6][8]. Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 439 million yuan, a 13.07% increase year-on-year, while net profit attributable to shareholders was 110 million yuan, down 0.63% [2][3]. - The company’s gross margin remained stable, with significant revenue growth in crystal components, including a 20.03% increase in crystal revenue and a 23.64% increase in laser crystal revenue [3]. Market Position and Strategy - The company is positioned as a global leader in the production of LBO, BBO, and Nd:YVO4 crystals, focusing on high-end optical components and expanding its market presence in emerging sectors [4]. - The introduction of a "one-stop" femtosecond laser solution aims to enhance competitiveness and capture a larger share of the domestic market [3]. Research and Development - R&D expenses rose to 43.51 million yuan, reflecting a commitment to innovation and collaboration with academic institutions [5]. - The company has developed advanced optical processing equipment and achieved certifications for its testing facilities, ensuring high product quality [5]. Earnings Forecast - The company forecasts revenues of 870 million yuan for 2024, with a growth rate of 11.3%, and expects to achieve a net profit of 234 million yuan, marking an 11.8% increase [8].