Amlogic(688099) 华金证券·2024-07-14 09:30Investment Rating - The report maintains a "Buy-A" rating for the company, indicating strong confidence in its future performance [1][3] Core Views - The company achieved a record high revenue in Q2 2024, with a year-over-year growth of 24.51% and a quarter-over-quarter growth of 18.81% [1] - The company's diversified product strategy is showing significant results, with five major product series advancing simultaneously [1] - New products, particularly the 6nm commercial chip based on ARM V9 architecture, have gained initial commercial orders, indicating strong market potential [1] - The company's automotive electronics chips are expanding from high-end to mid-to-low-end vehicle models, with mass production and commercialization achieved in 2023 [1] Financial Performance - In H1 2024, the company is expected to achieve revenue of approximately 3.016 billion yuan, a year-over-year increase of 28.32%, and net profit attributable to the parent company of approximately 362 million yuan, a year-over-year increase of 95.98% [1] - Excluding the impact of share-based payment expenses, the adjusted net profit attributable to the parent company is approximately 431 million yuan, with a year-over-year increase of 115.29% in non-GAAP net profit [1] - R&D expenses in H1 2024 amounted to approximately 674 million yuan, reflecting the company's commitment to innovation [1] Product Performance - The S-series 8K ultra-high-definition SOC chip performed exceptionally well in the first commercial batch bidding by domestic operators, supporting global mainstream video formats and 8Kp60 video decoding [1] - The T-series chips achieved a 70% year-over-year growth in sales revenue in H1 2024, with the new generation of high-end chips supporting 8K hardware decoding and 4K144Hz output [1] - The W-series Wi-Fi 6 products gained rapid market acceptance, with shipments accounting for over 8% of the company's total shipments in Q2 2024 [1] Future Outlook - The company expects further year-over-year revenue growth in Q3 2024 and the full year of 2024, driven by the recovery of the global consumer electronics market and the successful launch of new products [1] - The report forecasts revenue for 2024-2026 to be 7.020 billion yuan, 8.733 billion yuan, and 10.479 billion yuan, respectively, with year-over-year growth rates of 30.7%, 24.4%, and 20.0% [3] - Net profit attributable to the parent company is expected to grow by 65.0%, 37.4%, and 24.1% in 2024, 2025, and 2026, respectively [3] Valuation and Ratios - The company's P/E ratio is projected to be 34.8x, 25.4x, and 20.4x for 2024, 2025, and 2026, respectively, indicating a favorable valuation [4] - The ROE is expected to improve from 13.0% in 2024 to 15.9% in 2026, reflecting strong profitability [4] - The company's gross margin is forecasted to remain stable, ranging from 36.1% to 37.2% over the next three years [4]