LY iTECH(SZ:002600) Tianfeng Securities·2024-07-08 06:02Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [4]. Core Views - The company is expected to face short-term pressure on performance, with a projected net profit of 680 to 780 million yuan for the first half of 2024, representing a year-on-year decline of 45.52% to 37.51% [1]. - The decline in profitability is attributed to the poor profitability of new businesses and a decrease in gross margin due to intensified industry competition [1]. - The company is transitioning from a consumer electronics manufacturer to an AI terminal hardware manufacturing platform, leveraging its long-term experience in the consumer electronics industry [2]. - The company has implemented a stock option incentive plan to bind core employees, aiming for long-term growth [1]. Financial Summary - The company’s revenue for 2023 is projected at 34,123.71 million yuan, with a slight decline of 1.05% compared to 2022 [3]. - The expected revenue for 2024 is 39,583.50 million yuan, reflecting a growth rate of 16% [3]. - The net profit attributable to the parent company for 2024 is forecasted to be 1,839.36 million yuan, a decrease of 10.31% from 2023 [3]. - The company’s EBITDA for 2024 is estimated at 5,310.83 million yuan [3]. Business Outlook - The company is focusing on AI terminal hardware innovation and is positioned to benefit from the integration of hardware and AI technologies [2]. - The AI terminal and communication-related business achieved stable growth in 2023, generating revenue of 30,687 million yuan with a gross margin of 21.62% [2]. - The company aims to explore specific applications and synergies in its business areas related to AI terminal products [2].