Sharetronic(SZ:300857) Huachuang Securities·2024-04-29 04:02Investment Rating - The report maintains a "Strong Buy" rating for the company [1]. Core Views - The company's Q1 2024 performance exceeded expectations, with revenue, profit, and gross margin all showing significant sequential growth. Key business segments, including data storage, AIOT terminals, cloud services, and server remanufacturing, contributed to this robust performance [1]. - The company is positioned to benefit from the growth in storage, IoT smart terminals, and server demand, capitalizing on domestic substitution opportunities. Revenue forecasts for 2024-2026 have been revised upwards, with expected revenues of 77.99 billion, 103.15 billion, and 125.73 billion yuan respectively [1]. - The company is a leader in the domestic server remanufacturing sector, leveraging its strong supply chain management and high R&D investment to achieve competitive advantages [1]. Summary by Sections Financial Performance - In Q1 2024, the company achieved revenue of 1.759 billion yuan, representing a year-over-year increase of 118.38% and a quarter-over-quarter increase of 23.03%. The gross margin was 16.33%, up 3.23 percentage points year-over-year and 2.43 percentage points quarter-over-quarter. The net profit attributable to the parent company was 162 million yuan, a year-over-year increase of 253.42% and a quarter-over-quarter increase of 77.38% [7][8]. - The company expects to see continued growth in revenue and profit, with net profit projections for 2024, 2025, and 2026 at 700 million, 953 million, and 1.245 billion yuan respectively [8]. Business Segments - Data Storage: The company has seen a rising trend in product prices since Q3 2023, leading to increased sales revenue and net profit in Q1 2024. The company is expanding its product matrix and sales channels [1]. - AIOT Terminals: Demand for smart home, wearable, and security products has improved, contributing to hardware sales growth, particularly in overseas markets [1]. - Cloud Services: The V-SaaS video cloud service has seen significant user growth and an upward trend in ARPU. The company is also expanding its cloud platform through its server remanufacturing business [1]. - Server Remanufacturing: The company has ramped up production capacity, contributing to overall performance and establishing a sustainable business model [1]. Valuation - The target price for the company is set at 92.79 yuan, based on a price-to-earnings ratio of 40x for the storage business and 25x for the IoT smart terminal business [1].