Sharetronic(300857) GOLDEN SUN SECURITIES·2024-08-27 08:25Investment Rating - Maintain "Buy" rating due to strong performance and optimistic growth prospects [2] - The company's stock is rated as "Buy" with a target price of 52.41 RMB as of August 26, 2024 [3] Core Views - The company achieved significant revenue growth of 35.78 billion RMB in H1 2024, up 94.51% YoY, with net profit attributable to shareholders reaching 3.58 billion RMB, up 216.58% YoY [1] - Q2 2024 revenue was 18.19 billion RMB, up 75.92% YoY, with net profit of 1.96 billion RMB, up 191.38% YoY [1] - Gross margin improved to 17.46% in H1 2024, up 3.84 percentage points YoY, driven by higher-margin IoT smart terminal products (32.21% gross margin, up 10.38 percentage points YoY) [1] - The company is expanding into new growth areas such as computing power and cloud services, with partnerships established with leading AIoT hardware brands and cloud service providers [1] Financial Performance - Revenue for 2024E is projected at 8.026 billion RMB, with net profit of 805 million RMB, representing a 72.3% YoY growth in revenue and 180% YoY growth in net profit [5] - EPS for 2024E is forecasted at 3.28 RMB, with a P/E ratio of 16.0x [5] - ROE is expected to reach 25% in 2024E, up from 11.8% in 2023A [5] Business Highlights - Strong demand for storage products in AI PC, data centers, enterprise storage, and edge computing devices contributed to revenue growth [1] - The company is optimizing its IoT terminal product portfolio and business model, increasing the sales share of high-value-added products [1] - Cost optimization through lower raw material prices and digital manufacturing improvements has enhanced profitability [1] Industry and Market Position - The company operates in the consumer electronics industry, with a market capitalization of 12.85 billion RMB as of August 26, 2024 [3] - Free float shares account for 99.72% of total shares, with a 30-day average trading volume of 8.41 million shares [3]