Puya semiconductor(SH:688766)2024-07-22 08:00Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 86.94, maintaining a previous "Buy" rating [1][2]. Core Insights - The company is expected to benefit from the recovery in consumer electronics and the expansion of new application scenarios, leading to sequential growth in performance for the first half of 2024 [2]. - The company forecasts a revenue of approximately RMB 880 million for H1 2024, representing a year-on-year increase of 87.8%, and a net profit of approximately RMB 128 million, indicating a turnaround from losses [2]. - The revenue for Q2 2024 is projected to reach approximately RMB 475 million, a year-on-year increase of 79.25% and a quarter-on-quarter increase of 17.32% [2]. - The company has seen a doubling of its shipment volume to approximately 3.5 billion units from the same period last year, with a backlog of orders amounting to around RMB 170 million as of June 19, 2024 [2]. - The NOR Flash and MCU product lines have shown signs of recovery, with NOR Flash prices gradually stabilizing [2]. Financial Summary - The company’s revenue is projected to grow from RMB 1,127 million in 2023 to RMB 1,781 million in 2024, with a growth rate of 58% [3]. - The net profit is expected to recover from a loss of RMB 48 million in 2023 to a profit of RMB 254 million in 2024, reflecting a significant growth rate of 626.2% [3]. - The earnings per share (EPS) is forecasted to increase from a loss of RMB 0.46 in 2023 to RMB 2.41 in 2024 [3]. - The price-to-earnings (P/E) ratio is expected to decrease from 110.4 in 2022 to 36.1 in 2024, indicating improved valuation metrics [3].