HHCK(688535) ZHONGTAI SECURITIES·2024-08-31 03:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 54.65 CNY per share [1]. Core Insights - The company has returned to a growth trajectory in revenue and profit, driven by a recovery in demand for epoxy encapsulation materials and a strong performance in advanced packaging materials [1][2]. - The company is focusing on enhancing its research and development capabilities, particularly in advanced packaging materials, which are expected to see increased volume in the future [1][2]. Financial Summary - Revenue Forecast: The company is projected to achieve revenues of 342 million CNY in 2024, with a year-on-year growth rate of 21% [1]. - Net Profit: The net profit attributable to the parent company is expected to reach 53 million CNY in 2024, reflecting a significant increase of 69% year-on-year [1]. - Earnings Per Share (EPS): The EPS is forecasted to be 0.66 CNY in 2024, with a growth rate of 69% compared to the previous year [1]. - Gross Margin: The gross margin is expected to improve to 28.07% in 2024, up from 26.88% in 2023 [2]. - Research and Development: The company has increased its R&D investment, with R&D expenses projected to be 21 million CNY in 2024, accounting for 7.94% of revenue [1][2]. Market Position and Strategy - The company is positioned as a leader in the domestic epoxy encapsulation materials market, with high barriers to entry and significant growth potential in advanced packaging products [1][2]. - The company is actively enhancing its product offerings and technological capabilities, focusing on materials for semiconductor packaging and automotive electronics [1][2].