Telling Holding(SZ:000829) Huaxin Securities·2024-10-22 03:40Investment Rating - Buy (First Coverage) [2] Core Views - The company's profitability remains stable, with continuous R&D investment [2] - The company has diversified its business layout, with significant progress in both domestic and international markets [2] - The subsidiary WIKO has successfully entered the notebook market, marking a new growth area [2][3] - The company is expected to see strong revenue growth from 2024 to 2026, driven by its 3C business, new energy vehicle sales, and the notebook market [4] Financial Performance - In the first half of 2024, the company achieved revenue of RMB 51.052 billion, a year-on-year increase of 3.63% [2] - Net profit attributable to the parent company was approximately RMB 977.64 million, a year-on-year decrease of 90.89% [2] - Gross profit margin was 2.53% in the first half of 2024, down 0.16 percentage points year-on-year [2] - Net profit margin was 0.03%, down 0.20 percentage points year-on-year [2] Business Segments - The company maintains deep cooperation with leading manufacturers such as Apple, Samsung, and Huawei, securing a leading position in the smart terminal sales market [2] - Apple business: The company is a core agent for Apple in China, with over 1,800 authorized stores and more than 1,000 authorized specialty stores [2] - Samsung business: The company is one of the largest national agents for Samsung in China, with 2,311 managed stores as of the first half of 2024 [2] - Huawei business: The company has optimized and upgraded authorized stores, with over 1,400 authorized stores and a presence in the new energy vehicle sales market [2] - International business: The company is steadily advancing its internationalization strategy, focusing on the mobile phone trade business and establishing a parallel export platform for cars [2] Subsidiary WIKO - WIKO successfully completed the trademark registration for HiMateBook in May 2024, marking its entry into the notebook market [2] - The company has launched the HiMateBook MASH-32 and NICG-16 models, which have passed certification by the China Quality Certification Center [3] - WIKO has also made significant progress in the smartphone market, with the Hi Enjoy 70 model achieving strong sales performance [3] Future Outlook - Revenue is expected to grow to RMB 107.876 billion in 2024, RMB 123.343 billion in 2025, and RMB 141.242 billion in 2026 [4] - EPS is forecasted to be RMB 0.08 in 2024, RMB 0.20 in 2025, and RMB 0.33 in 2026 [4] - The company's PE ratio is expected to be 166x in 2024, 63x in 2025, and 38x in 2026 [4] Financial Metrics - The company's ROE is projected to increase from 2.5% in 2024 to 9.8% in 2026 [6] - The net profit margin is expected to rise from 0.1% in 2024 to 0.3% in 2026 [6] - The company's asset-liability ratio is forecasted to remain stable at around 86% from 2024 to 2026 [6]