HMD(SZ:002947) Huachuang Securities·2024-04-23 01:32Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 49.91 CNY, indicating an expected performance exceeding the benchmark index by over 20% in the next six months [1][2]. Core Insights - The company reported Q1 2024 revenue of 425 million CNY, a year-over-year increase of 22.18%, with a gross margin of 28.45%, and a net profit attributable to shareholders of 70.41 million CNY, reflecting a significant year-over-year growth of 69.15% [1][2]. - The substantial profit growth is attributed to market expansion, capacity enhancement, and a strong focus on R&D and innovation, which have driven steady performance [1][2]. - The company has established strong partnerships with major clients, including Apple and Google, and is positioned to benefit from the growing demand in the server, liquid cooling, and energy storage sectors [1][2]. Financial Summary - For 2024, the company is projected to achieve total revenue of 3.388 billion CNY, representing an 86.3% year-over-year growth, with net profit expected to reach 500 million CNY, a 77.6% increase [5]. - The earnings per share (EPS) for 2024 is forecasted at 2.17 CNY, with a price-to-earnings (P/E) ratio of 14 [5]. - The company’s financial health is indicated by a debt-to-equity ratio of 24.94% and a current ratio of 3.4, suggesting a strong liquidity position [5].