Willfar(688100) 天风证券·2024-08-01 02:00Investment Rating - The investment rating for the company is "Buy" with a target price of 39.52 CNY, maintaining the rating for the next six months [1]. Core Views - The company has shown continuous rapid growth in quarterly performance, with a significant improvement in profitability. In the first half of 2024, the company achieved a revenue of 1.223 billion CNY, representing a year-on-year increase of 20.76%, and a net profit attributable to shareholders of 272 million CNY, up 26.52% year-on-year [1]. - The company has made significant progress in its global expansion, with international business revenue doubling and a strong growth in communication chip business, which generated 270 million CNY in revenue, a year-on-year increase of 40.12% [1]. - The company has a robust order backlog, with orders amounting to 3.512 billion CNY as of June 2024, a year-on-year increase of 17%. The company is actively supporting the construction of a new power system in the country and has won a bid worth 312 million CNY in July 2024 [1]. Financial Performance Summary - In the first half of 2024, the company reported a revenue of 1.223 billion CNY, with a net profit of 272 million CNY, and a non-recurring net profit of 265 million CNY, reflecting a year-on-year growth of 15.86% [1]. - The company’s cash flow from operating activities improved significantly, reaching 160 million CNY, a year-on-year increase of 220.19% [1]. - The company’s total assets as of 2023 were 4.258 billion CNY, with a total liability of 1.286 billion CNY, resulting in a debt-to-asset ratio of 30.93% [1][4]. Earnings Forecast and Investment Suggestions - The company is expected to benefit from the ongoing investments in the new energy sector, with an estimated net profit of 655 million CNY, 841 million CNY, and 1.060 billion CNY for the years 2024, 2025, and 2026 respectively, corresponding to P/E ratios of 30, 24, and 19 times [1][3].