兆易创新：业绩增长明确

Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% from the current price [2][3]. Core Insights - The company has shown significant revenue growth of over 20% in the first half of 2024, with a net profit increase of over 70% after excluding non-recurring items, reflecting a recovery in downstream consumer and networking markets [3]. - The company is positioned as a leader in the domestic storage sector, expected to benefit from domestic import substitution and growing semiconductor demand, with a forecasted net profit of 11.8 billion RMB, 17.8 billion RMB, and 22.8 billion RMB for 2024, 2025, and 2026 respectively, representing year-on-year growth of 633%, 51%, and 23% [3]. - The report anticipates a continued recovery in the storage industry, particularly for NOR Flash products, driven by increasing demand from smartphones, PCs, and AI devices, suggesting a favorable market environment in the second half of 2024 [3]. Summary by Relevant Sections Company Information - The company operates in the electronics industry, with a current A-share price of 82.55 RMB as of July 29, 2024, and a market capitalization of 54.874 billion RMB [1]. - The stock has experienced a price decline of 26.2% over the past year, with a 12-month high of 115.97 RMB and a low of 55.2 RMB [1]. Financial Performance - In the first half of 2024, the company achieved a net profit of 520 million RMB, a year-on-year increase of 54.2%, with a non-recurring net profit of 470 million RMB, up 72% year-on-year [3]. - The second quarter of 2024 saw a net profit of 310 million RMB, representing a year-on-year increase of 68% and a quarter-on-quarter increase of 53% [3]. Market Position and Outlook - The company is expected to continue benefiting from the recovery in the storage industry, with projections for significant profit growth in the coming years [3]. - The report highlights the company's strong market position in NOR Flash, anticipating that it will align with the overall recovery in the storage sector [3].