Amlogic(688099) Guotai Junan Securities·2024-07-14 05:31Investment Rating - The investment rating for the company is "Accumulate" [10][11] - The target price has been adjusted to 87.30 CNY from the previous 104.17 CNY [11] Core Insights - The company's Q2 performance exceeded expectations, indicating a potential new growth phase [10] - The market bottom was identified in Q1, with demand beginning to recover in Q2 as domestic operator tenders gradually resume [11] - The company is expanding its market share overseas, supported by the launch of new products such as T/W/V series [11] Financial Performance Summary - For H1 2024, the company achieved revenue of approximately 30.16 billion CNY, a year-on-year increase of 28.32%, and a net profit of around 3.62 billion CNY, up 95.98% year-on-year [11] - Q2 2024 revenue reached 16.38 billion CNY, representing a year-on-year growth of 24.51% and a quarter-on-quarter increase of 18.81% [11] - The net profit for Q2 2024 was 2.34 billion CNY, with a year-on-year increase of 51.97% and a quarter-on-quarter increase of 83.82% [11] Product Line and Market Dynamics - The S series has shown strong performance in the first commercial batch tender for 8K chips from domestic operators [11] - The T series has seen significant growth in overseas markets, with H1 2024 revenue increasing by approximately 70% [11] - The W series has quickly gained market recognition following the launch of its first WiFi6 product, with rapid order growth [11] - The A series is benefiting from a recovery in AIoT downstream inventory replenishment, with successful commercial orders for its new generation ARM V9 architecture chips [11] Catalysts for Growth - Anticipated recovery in tenders in Q3 and continued upward demand trends are seen as key catalysts for growth [11]