InHand Networks(SH:688080) Haitong Securities International·2025-05-07 09:27Investment Rating - The report maintains an "Outperform" rating for the company and raises the target price to RMB 56.67 from the previous estimate [5][11]. Core Insights - The company reported strong export performance and continuous growth in new products, particularly in the enterprise network segment, which saw revenue doubling [6][12]. - For 2024, the company achieved revenue of RMB 612 million, a year-on-year increase of 24.00%, and a net profit attributable to shareholders of RMB 130 million, up 38.25% year-on-year [11][12]. - The first quarter of 2025 showed revenue of RMB 150 million, reflecting a 40.86% year-on-year growth, primarily driven by overseas market expansion and early stocking by some U.S. clients [11][12]. Financial Summary - Revenue projections for 2025-2027 are RMB 749 million, RMB 885 million, and RMB 1,016 million, respectively, with corresponding net profits of RMB 167 million, RMB 214 million, and RMB 261 million [4][11]. - The earnings per share (EPS) are expected to be RMB 2.27, RMB 2.90, and RMB 3.53 for 2025, 2026, and 2027, respectively [4][11]. - The company’s gross profit margin (GPM) for industrial IoT products was 56.73%, while the enterprise network products achieved a GPM of 55.65% [12]. Product and Market Performance - By product, industrial IoT revenue was RMB 314 million (YoY +28.49%), enterprise network revenue was RMB 77.08 million (YoY +94.90%), and digital power distribution grid revenue was RMB 163 million (YoY +21.39%) [12]. - The overseas market revenue reached RMB 274 million, marking a significant year-on-year increase of 53.63%, while domestic market revenue was RMB 335 million, up 6.74% [12]. Equity Incentive Plan - The company announced a restricted stock incentive plan for 2025, proposing to grant 395,000 restricted shares, with performance targets set for revenue growth of not less than 15%, 32.25%, and 52.09% for 2025-2027 [13]. Catalysts for Growth - New product launches, including edge gateways and in-vehicle gateways, are expected to drive further growth [14].