Tricolor(SH:603516) KAIYUAN SECURITIES·2024-08-09 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) as of August 9, 2024 [2]. Core Views - The company has achieved a breakthrough in AI revenue, with significant expectations for future collaborations with major players in the industry [1][3]. - The company's revenue for Q2 reached 159 million yuan, representing a year-on-year growth of 8.93%, while the net profit attributable to the parent company was 33.25 million yuan, up 78.27% year-on-year [1]. - The overall gross margin improved to 53.31%, an increase of 9.87 percentage points compared to the same period in 2023, indicating enhanced operational efficiency [1]. - The company has established a partnership with N Company, marking a transition from 0 to 1 in AI product revenue, with expectations for rapid growth in the future [3]. Financial Summary - The company's projected revenue for 2024 is 659 million yuan, with a year-on-year growth of 32% [4]. - The net profit attributable to the parent company is forecasted to be 130 million yuan in 2024, reflecting a significant increase of 641.3% year-on-year [4]. - The gross margin is expected to stabilize around 49% for the next few years, with net profit margins projected to reach 19.7% in 2024 [4]. - The company's earnings per share (EPS) is projected to increase from 0.09 yuan in 2023 to 0.64 yuan in 2024 [4]. Market Position - The company is positioned as a leading provider of visual control system equipment and solutions in the domestic market, with a strong foothold in the AI computing sector [2]. - The total market capitalization of the company is approximately 5.956 billion yuan, with a current price-to-earnings (P/E) ratio of 46.0 for 2024 [2].