InHand Networks(SH:688080) Haitong Securities·2024-10-28 10:43Investment Rating - The investment rating for the company is "Outperform the Market" [2][7]. Core Views - The report highlights significant growth in the company's third-quarter performance, with a revenue increase of 15.98% year-on-year, reaching 408 million yuan, and a net profit increase of 21.00%, totaling 83.37 million yuan [5]. - The company is experiencing accelerated growth in its industrial IoT products, with a revenue increase of 23.43% year-on-year, and its enterprise network products have seen a remarkable growth of 134.48% [6]. - The report projects revenue growth for the company from 574 million yuan in 2024 to 814 million yuan in 2026, with net profits expected to rise from 111 million yuan to 160 million yuan during the same period [7][11]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a gross margin of 52.82%, an increase of 2.13 percentage points year-on-year, and a net profit margin of 20.42%, up by 0.85 percentage points [5]. - In Q3 2024, the company reported a revenue of 147 million yuan, a year-on-year increase of 27.63%, while the net profit for the same quarter was 29.95 million yuan, reflecting a year-on-year growth of 34.11% [5]. Business Segments - The industrial IoT segment generated 220 million yuan in revenue for the first three quarters, marking a 23.43% increase year-on-year [6]. - The enterprise network segment's revenue reached 54.89 million yuan, showing a substantial growth of 134.48% year-on-year [6]. - The digital distribution network products generated 93.60 million yuan, with a modest growth of 1.12% year-on-year [6]. Profitability Forecast - The company is expected to maintain a gross margin of around 52.9% in 2024, with projections for further improvement in subsequent years [11]. - The earnings per share (EPS) is forecasted to increase from 1.51 yuan in 2024 to 2.18 yuan in 2026 [7][11]. Valuation - The report assigns a dynamic PE range of 20-25X for 2025, suggesting a reasonable value range for the stock between 36.93 yuan and 46.16 yuan [7].