MTC(SZ:002429) Huachuang Securities·2024-08-06 03:31Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 7 CNY, compared to the current price of 4.95 CNY [2]. Core Insights - The company reported a significant increase in both revenue and profit for the first half of 2024, achieving a revenue of 9.52 billion CNY, a year-on-year growth of 23.1%, and a net profit of 910 million CNY, up 24% [2]. - The LED business continues to show high demand, with the LED segment contributing significantly to the company's growth, particularly in the semiconductor and COB display sectors [3]. - The company's gross margin for the first half of 2024 was 17.7%, with the LED business achieving a gross margin of 31.5%, indicating a strong profitability trend [3]. - Future expectations are positive, with anticipated cost reductions in Mini LED technology expected to further enhance profitability [3]. Summary by Sections Financial Performance - In H1 2024, the traditional audio-visual business generated 6.94 billion CNY in revenue, a 20.9% increase year-on-year, while the LED business generated 2.58 billion CNY, a 29.4% increase [3]. - The net profit from the semiconductor segment reached 1.37 billion CNY, reflecting a 57.3% increase, with a net profit margin of 27.6% [3]. - The company’s net profit margin improved to 10.4% in H1 2024, up 0.4 percentage points year-on-year [3]. Future Projections - The report adjusts the EPS forecast for 2024-2026 to 0.48 CNY, 0.59 CNY, and 0.70 CNY respectively, reflecting a positive outlook for earnings growth [3]. - The company is expected to maintain a high growth trajectory in the LED sector, supported by ongoing investments and market demand [3]. Valuation Metrics - The projected PE ratios for 2024, 2025, and 2026 are 10, 8, and 7 respectively, indicating a favorable valuation compared to expected earnings growth [4].