Espressif Systems(SH:688018) CAITONG SECURITIES·2024-07-31 00:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [15] Core Insights - The company reported a significant increase in revenue and profit for the first half of 2024, with revenue reaching 920 million yuan, a year-on-year increase of 37.96%, and net profit attributable to shareholders reaching 152 million yuan, a year-on-year increase of 134.85% [1] - The company's gross margin improved to 44.11% in Q2 2024, up 3.14 percentage points year-on-year, driven by lower upstream supply chain costs and increased demand from module solution customers [9] - The company is experiencing strong demand driven by new product launches and customer expansion, particularly in the AIoT sector, with new products like ESP32-S3, C3, and C2 showing rapid growth [16] Financial Performance Summary - For 2024, the company is expected to achieve revenues of 2.053 billion yuan and net profits of 329 million yuan, with corresponding PE ratios of 36.13 [23] - The company’s revenue growth rate is projected to be 43.27% for 2024, followed by 29.78% in 2025 and 28.68% in 2026 [24] - The net profit growth rate is expected to be 141.24% for 2024, 37.75% for 2025, and 39.84% for 2026 [24] Product and Market Development - The company is enhancing its product matrix through the acquisition of M5 Stack, which will strengthen its hardware application solutions in the IoT market [21] - The introduction of new products such as low-power Bluetooth and dual-band WiFi 6 is anticipated to further drive growth in 2024 [16]