TKD(603738) 国金证券·2024-09-01 03:40Investment Rating - The report maintains a Buy rating for Taijing Technology (603738 SH) with a target price range of 18 43 RMB [5][7] Core Views - Taijing Technology achieved revenue of 393 million RMB in H1 2024, a YoY increase of 1 98%, and net profit attributable to the parent company of 57 39 million RMB, a YoY increase of 21 88% [1] - The company is focusing on high-end product development, including high-frequency, high-stability, and clock oscillator products, with a gross margin of 25 22% in H1 2024, up 1 03 pct YoY [1] - Taijing Technology is accelerating its layout in high-end products such as miniaturized, ultra-high-frequency, automotive-grade oscillators, and RTC modules, with significant progress in 5G, Wi-Fi 6, and IoT applications [1] Financial Performance - Revenue for Q2 2024 was 211 million RMB, a YoY increase of 0 44%, while net profit attributable to the parent company was 26 88 million RMB, a YoY decrease of 3 87% [1] - The company's net profit margin in H1 2024 was 14 85%, up 2 31 pct YoY, with a Q2 gross margin of 25 54%, up 0 69 pct QoQ [1] - Forecasted net profit for 2024-2026 is 125 million RMB, 172 million RMB, and 209 million RMB, with YoY growth rates of 22 92%, 38 12%, and 21 70% respectively [1] Product Development and Market Strategy - Taijing Technology is enhancing its product portfolio with a focus on high-frequency and miniaturized products, targeting applications in 5G, Wi-Fi 6, and IoT [1] - The company has achieved certification for its 76 8MHz high-frequency thermal crystal resonator on Qualcomm's automotive-grade 5G platforms SA522 and SA525 [1] - Taijing Technology is strengthening its collaboration with major IoT chip platforms and expanding its presence in smart terminals and network communication applications [1] Valuation and Market Position - The current PE ratio for Taijing Technology is 41x for 2024, 30x for 2025, and 24x for 2026 [1] - The company is positioned as a leading domestic oscillator manufacturer, with a strong focus on high-end product development and market expansion [1]