Focus Tech.(SZ:002315) Huafu Securities·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 45.06 CNY per share, based on a 30X PE for 2024 [3][16]. Core Views - The company reported a total revenue of 384 million CNY for Q1 2024, representing an 11% year-on-year growth, and a net profit attributable to shareholders of 77 million CNY, which is a 57.9% increase year-on-year [1]. - The company is focusing on enhancing its AI products, which are expected to drive revenue growth and improve profitability across the platform [12][3]. - The company has seen an increase in its paid membership on the China Manufacturing Network platform, reaching 25,018 members, with AI penetration at 18.6% [1]. Financial Performance - For Q1 2024, the company achieved a gross margin of 79% and a net margin of 20%, both showing improvements compared to the previous year [1]. - The projected revenues for 2024, 2025, and 2026 are 1.768 billion CNY, 2.081 billion CNY, and 2.495 billion CNY respectively, with corresponding net profits of 476 million CNY, 607 million CNY, and 787 million CNY [3][15]. - The company’s operating income growth rates are forecasted at 16.3% for 2024, 17.7% for 2025, and 19.9% for 2026 [7]. Market and Industry Insights - The company is capitalizing on the foreign trade peak season, with significant increases in website traffic and buyer engagement, indicating strong market demand [2][13]. - The company plans to participate in major trade exhibitions in various countries to enhance its market presence and drive sales [2].