CCTC(300408) 东方证券·2024-09-02 09:09Investment Rating - The report maintains a Buy rating for the company with a target price of 36.3 RMB [2][6] Core Views - The company's H1 2024 revenue reached 3.43 billion RMB, a 30% YoY increase, with net profit attributable to shareholders of 1.03 billion RMB, up 40% YoY [1] - Q2 2024 revenue was 1.86 billion RMB, a 29% YoY increase, with net profit attributable to shareholders of 590 million RMB, up 44% YoY [1] - The company's gross margin improved to 41.9%, up 2.2 pct YoY, and net margin reached 29.9%, up 2.1 pct YoY [1] - The MLCC industry is recovering, driven by strong demand from AI servers, AI PCs, and automotive electronics, with the company's high-capacity MLCC products winning the 12th China Electronics Information Expo Innovation Gold Award [1] - The company's high-capacity MLCC expansion project is 15% complete, with expected production by May 2025, positioning the company for accelerated domestic substitution [1] - R&D investment increased by 13% YoY, with products like fiber ceramic ferrules and ceramic substrates for chip resistors recognized as "Single Champion" products by the Ministry of Industry and Information Technology [1] - The company is advancing innovation in products like solid oxide fuel cells (SOFC) and has established research institutes in Chengdu and Suzhou [1] Financial Forecasts - The company's revenue is expected to grow from 7.686 billion RMB in 2024E to 12.367 billion RMB in 2026E, with a 34.2% YoY growth in 2024E [3] - Net profit attributable to shareholders is forecasted to increase from 2.178 billion RMB in 2024E to 3.958 billion RMB in 2026E, with a 37.7% YoY growth in 2024E [3] - Gross margin is projected to rise from 44.1% in 2024E to 46.8% in 2026E, while net margin is expected to increase from 28.3% in 2024E to 32.0% in 2026E [3] - EPS is forecasted to grow from 1.14 RMB in 2024E to 2.07 RMB in 2026E [3] Industry and Market Context - The MLCC industry is benefiting from increased demand in AI servers, AI PCs, and automotive electronics, with NVIDIA's GB200 servers and AI PCs expected to drive further growth in H2 2024 [1] - The company's MLCC products are widely used in mobile communications, smart terminals, and new energy industries, with a strong competitive position in the high-end market [1]