OKE(688308) 浙商证券·2024-09-29 12:23Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company is experiencing pressure on its performance, with a 45% year-on-year decline in net profit attributable to the parent company in the first half of 2024, and a 38% decline in Q2 2024 [2] - Revenue for the first half of 2024 reached 580 million yuan, a year-on-year increase of 8.75%, while net profit attributable to the parent company was 60.09 million yuan, a decrease of 44.58% [2] - The decline in profitability is attributed to the new CNC tool industrial park project entering production and being in the capacity ramp-up phase, leading to lower initial gross margins [2][3] Financial Summary - In the first half of 2024, the company achieved a gross margin of approximately 26.14%, down 6.51 percentage points year-on-year, and a net margin of 10.37%, down 9.98 percentage points year-on-year [2] - The CNC tools segment generated revenue of 321 million yuan, a year-on-year increase of 3.66%, while hard alloy products revenue was 254 million yuan, up 14.35% [2] - The company’s overseas market revenue reached 115 million yuan in the first half of 2024, a significant year-on-year increase of 94.67% [3] Profitability Forecast and Valuation - The forecast for net profit attributable to the parent company for 2024-2026 is 154 million, 219 million, and 294 million yuan, respectively, with a compound annual growth rate (CAGR) of 38% [4] - The corresponding price-to-earnings (P/E) ratios are projected to be 19, 13, and 10 times for the respective years [4]