Shenzhen Honor Electronic (300870) 光大证券·2024-08-31 04:14Investment Rating - The report maintains a "Buy" rating for the company, reflecting confidence in its future growth potential, particularly in the high-power server power segment [2][5] Core Views - The company's revenue for H1 2024 reached RMB 1.599 billion, a YoY increase of 23.46%, with net profit attributable to shareholders surging by 933.80% to RMB 86 million [1] - Data center power business revenue grew significantly by 77.16% YoY, with high-power data center power products contributing RMB 209 million, a 464.12% YoY increase [2] - The company's gross margin improved to 20.95% in H1 2024, up 1.55 percentage points YoY, driven by higher-value product shipments and stable raw material prices [1] - The company's equity incentive plan sets ambitious revenue and net profit growth targets for 2024-2026, indicating strong management confidence [1] Financial Performance - Q2 2024 revenue hit a record high of RMB 903 million, a 16.37% YoY increase and 29.82% QoQ growth [1] - Net profit margin in Q2 2024 improved to 6.12%, up 5.37 percentage points YoY and 1.67 percentage points QoQ [1] - The company's ROE (diluted) is expected to rise from 10.36% in 2024E to 13.74% in 2026E, reflecting improving profitability [3] - EPS is projected to grow from RMB 2.08 in 2024E to RMB 3.54 in 2026E, driven by strong performance in the data center power segment [3] Business Highlights - The company has established itself as a leading domestic supplier of high-power server power products, with capabilities comparable to international standards [2] - Key customers include major server system manufacturers such as Inspur, Foxconn, and Lenovo, positioning the company well to capitalize on the AI-driven demand for data center infrastructure [2] - The company's gross margin for the data center power business reached 26.24% in H1 2024, up 6.50 percentage points YoY, driven by product mix optimization [2] Valuation and Forecast - The company's 2024-2026 net profit forecasts are RMB 211 million, RMB 268 million, and RMB 358 million, respectively, with slight downward revisions due to equity incentive costs and raw material price fluctuations [2] - The P/E ratio is expected to decline from 19x in 2024E to 11x in 2026E, reflecting strong earnings growth and improving valuation attractiveness [3] - The EV/EBITDA ratio is projected to decrease from 16.8x in 2024E to 8.6x in 2026E, indicating improving operational efficiency and cash flow generation [3]