LY iTECH(SZ:002600)2024-07-08 11:31Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [5][6]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 680-780 million yuan for the first half of 2024, representing a year-on-year decline of 45.52%-37.51%, which is in line with expectations. The non-recurring net profit is projected to be 550-650 million yuan, down 48.74%-39.41% year-on-year [5]. - The decline in profits is attributed to the traditional off-season for consumer electronics and intensified industry competition, leading to a decrease in overall gross margin. Additionally, the reduction in non-recurring gains compared to the previous year has impacted profitability [5]. - The company is expected to benefit significantly from the AI and terminal hardware upgrades, particularly with Apple's anticipated enhancements in cooling and charging technologies. The strong computing power of Apple chips is expected to drive demand for new devices, which will positively impact the company's business [5]. - The launch of Vision Pro in multiple regions is anticipated to create substantial opportunities, with the company being a key supplier of components. The potential in humanoid and industrial robotics, as well as in automotive and photovoltaic sectors, is also highlighted as a growth area [5]. Financial Summary - The company forecasts total revenue of 40,751 million yuan for 2024, with a year-on-year growth rate of 19.4%. The net profit attributable to shareholders is expected to be 2,107 million yuan, reflecting a slight increase of 2.7% year-on-year [7][8]. - The gross margin is projected to be 19.3% for 2024, with a gradual increase expected in subsequent years [7]. - The report indicates a downward revision of profit forecasts for 2024 and 2025 to 2.1 billion yuan and 2.8 billion yuan, respectively, while introducing a new forecast for 2026 at 3.4 billion yuan [6].