MTC(SZ:002429) HTSC·2024-07-09 03:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 6.90 [2][6]. Core Views - The company is expected to achieve a revenue of RMB 90-100 billion for 1H2024, representing a year-on-year growth of 16.35% to 29.27%. The net profit attributable to the parent company is projected to be RMB 8.9-9.3 billion, reflecting a year-on-year increase of 21.21% to 26.66% [2][3]. - The second quarter of 2024 is anticipated to show a revenue growth of 21.26% to 46.01% year-on-year, with net profit growth of 36.65% to 48.03% [2][3]. - The company is benefiting from a recovery in TV OEM orders and a positive trend in its LED business, particularly in Mini LED COB direct display and LED chip sectors [3][4]. Summary by Sections Revenue and Profit Forecast - The company forecasts a revenue of RMB 20,762 million for 2024, with a year-on-year growth of 20.94%. The net profit is expected to reach RMB 2,094 million, indicating a growth of 31.86% [9][14]. - The earnings per share (EPS) are projected to be RMB 0.46, RMB 0.53, and RMB 0.59 for 2024, 2025, and 2026 respectively [9][14]. Business Performance - The company has seen an increase in TV business shipment volumes, with a recovery in OEM orders contributing to this growth. The Mini LED COB direct display business is also performing well, with an increase in production capacity [3][4]. - The gross margin is expected to improve due to a higher proportion of revenue from high-margin COB direct display products and the release of more capacity for high-margin LED chip products [4][5]. Market Outlook - The report expresses optimism regarding the company's TV OEM growth, particularly in the North American market, as demand is expected to recover in the second half of the year [5]. - The LED business is also expected to benefit from an optimized product structure, with Mini LED COB direct display products gaining market share [5].