occurrences
The company released its 2024 semi-annual report. During the reporting period, it achieved operating income of 3.11 billion yuan, a year-on-year increase of 10.48%; net profit to mother of 0.209 billion yuan, a year-on-year decrease of 12.64%; net profit after deducting non-return to mother of 0.207 billion yuan, a year-on-year decrease of 1.24%. Among them, 2024Q2 achieved operating income of 1.819 billion yuan, up 17.61% year on year and 40.89% month on month; net profit to mother of 0.131 billion yuan, down 3.99% year on year and up 69.53% month on month; net profit without return to mother of 0.133 billion yuan, up 1.04% year on year and 82.03% month on month.
Increased gross margin and excellent cost control
The company's 2024H1 gross margin reached 22.69%, up 0.96pct year on year; 2024Q2 gross margin reached 22.80%, up 1.32pct year on year, and 0.27pct month-on-month. The company's 2024Q2 management expenses were 33.1335 million yuan, down 14.44% from the previous month; the management expenses ratio was 1.82%, down 1.18 pcts from month to month. 2024Q2 sales expenses were 36.7681 million yuan, down 14.42% from the previous month; the sales expenses ratio was 2.02%, down 1.31 pcts from the previous month.
Maintain high investment in R&D and continuously expand product range
The company's 2024H1 R&D expenses reached 0.312 billion yuan, up 10.48% year on year; 2024Q2 R&D expenses reached 0.164 billion yuan, up 10.82% year on year and 9.97% month on month. The company's new product range continues to expand, and the 2024H1 transmission class WSS, 50G PON series products with fixed network access, and 1.6T high-speed data center products are progressing rapidly.
2024H1, the company continues to improve overseas manufacturing and high-end digital communication product delivery capabilities, and completed production capacity construction of overseas manufacturing bases and high-end optoelectronic device industry bases in the Wuhan Donghu Comprehensive Free Trade Zone.
Performance improved month-on-month, and it is recommended to keep an eye on it
We expect the company's revenue for 2024-2026 to be 7.44/8.767/10.084 billion yuan, with year-on-year growth rates of 22.75%/17.84%/15.03%, respectively; net profit to mother of 0.702/0.814/0.919 billion yuan, respectively, with year-on-year growth rates of 13.43%/15.93%/12.85%, 3-year CAGR of 14.06%; EPS of 0.88/1.03/1.16, respectively. In view of the month-on-month improvement in the company's performance, continuous expansion of product range, and continuous progress in production capacity construction, it is recommended to keep an eye on it.
Risk warning: Product demand falls short of expected risk; technology development falls short of expected risk.