InHand Networks(688080) 国泰君安·2024-04-25 12:32Investment Rating - The report maintains an "Overweight" rating for the company with a target price of 51.60 CNY, unchanged from the previous prediction [5][7] - The current stock price is 33.24 CNY, indicating a significant upside potential based on the target price [5][7] Core Views - The company's 2023 performance met expectations, with revenue and net profit growing steadily [5] - Revenue reached 493 million CNY, a 27.49% year-over-year increase, while net profit attributable to shareholders grew 34.29% to 94 million CNY [5] - The growth was driven by increased sales of industrial IoT communication products (25.13% growth) and smart power grid monitoring systems (58.15% growth) [5] - The company's overseas business shows potential for breakthroughs, with pilot applications in 20 countries including Saudi Arabia and Thailand [5] - The industrial IoT sector is expected to contribute 4.69 trillion CNY to China's economy in 2023, providing growth opportunities for the company [5] Financial Performance - The company achieved a gross margin of 51.5% in 2023, up from 48.1% in 2022 [13] - Operating profit margin improved to 18.2% in 2023 from 14.0% in 2022 [13] - Net profit margin increased to 19.0% in 2023 from 18.2% in 2022 [13] - Return on equity (ROE) improved to 10.3% in 2023 from 8.6% in 2022 [13] Future Projections - Revenue is expected to grow to 1.067 billion CNY by 2026, with a compound annual growth rate of approximately 29% [13] - Net profit is projected to reach 248 million CNY by 2026, with a CAGR of around 35% [13] - EPS is forecasted to grow from 1.28 CNY in 2023 to 3.37 CNY in 2026 [13] Industry Outlook - The industrial IoT sector is experiencing stable growth, with increasing demand for smart grid solutions [5] - The company is well-positioned to benefit from the expansion of power grid intelligence and overseas market opportunities [5]