Wuhan Jingce Electronic (300567) 国泰君安·2024-07-14 23:01Investment Rating - The investment rating for the company is "Accumulate" [3][4]. Core Views - The report highlights a significant profit recovery for the company, particularly in the semiconductor sector, with a positive outlook on its strategic positioning in new technologies and semiconductor equipment [4]. - The company has adjusted its 2024 net profit forecast to 254 million yuan from the previous 293 million yuan, while maintaining the 2025 and 2026 forecasts at 426 million yuan and 572 million yuan, respectively [4]. - The target price has been revised down to 74.40 yuan from 78.49 yuan, based on a 80x PE ratio for 2024 [4]. Financial Performance - The company reported a net profit of 45-55 million yuan for the first half of 2024, representing a year-on-year increase of 272.09%-354.77% [4]. - The net profit for Q2 2024 is expected to be between 60.93 million yuan and 70.93 million yuan, a significant increase from 21.83 million yuan in the same period last year [4]. - The company’s revenue for 2024 is projected to be 2.926 billion yuan, reflecting a 20.4% increase compared to 2023 [8]. Industry Outlook - The display industry is showing signs of steady recovery, with demand for consumer electronics gradually improving, which is expected to drive growth in the sector [4]. - The semiconductor equipment segment is entering a harvest phase, with increased delivery volumes and revenue recognition due to the completion of several products in mass production [4]. - The company has a robust order backlog of 3.536 billion yuan as of April 22, 2024, with significant contributions from the display and semiconductor sectors [4]. Research and Development - The company invested 641 million yuan in R&D in 2023, accounting for 26.4% of its revenue, focusing on new display technologies such as OLED and Micro-OLED [4]. - The company is actively advancing the iteration of older products and validating new optical equipment in the semiconductor sector [4].