TFME(SZ:002156) Guotai Junan Securities·2024-07-15 08:01Investment Rating - The report maintains a "Buy" rating for the company with a target price of 30.26 CNY [4][6]. Core Views - The company is expected to benefit significantly from the recovery in the semiconductor industry and the accelerating demand for artificial intelligence (AI), leading to a notable increase in profits [3][4]. - The company has a strong partnership with AMD, which is anticipated to drive growth as AMD launches new products in the AI GPU segment [4][5]. Financial Summary - The company's revenue is projected to grow from 22.27 billion CNY in 2023 to 26.36 billion CNY in 2024, reflecting an 18.4% increase [5]. - The net profit attributable to shareholders is expected to rise dramatically from 169 million CNY in 2023 to 822 million CNY in 2024, marking a 385% increase [5]. - Earnings per share (EPS) are forecasted to increase from 0.11 CNY in 2023 to 0.54 CNY in 2024 [5]. Performance Indicators - The company is expected to achieve a net profit of 2.88 to 3.75 billion CNY in the first half of 2024, representing a year-on-year increase of 253.44% to 299.79% [4]. - The gross profit margin is projected to improve from 11.7% in 2023 to 12.9% in 2024 [10]. - The return on equity (ROE) is anticipated to rise from 1.2% in 2023 to 5.6% in 2024 [10]. Market Position - The company is the largest packaging and testing service provider for AMD, handling over 80% of AMD's orders, positioning it well to capitalize on AMD's new product launches [4][5]. - The global AI PC shipment is expected to reach approximately 13 million units in 2024, indicating a strong market for AI-related products [4]. Future Outlook - The company is expected to maintain high growth in Q2 2024, with a significant increase in production capacity utilization and revenue from high-end products [4]. - The strategic partnership with AMD and the company's focus on advanced packaging technologies are seen as key growth drivers in the AI computing sector [4].