Tricolor(SH:603516) Great Wall Securities·2024-08-12 11:32Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [12]. Core Insights - The company has shown significant improvement in performance, with a notable increase in AI business and successful progress in self-developed chips, suggesting a strong outlook for continued rapid growth [2][3]. - In the first half of 2024, the company achieved revenue of 234 million yuan, a year-on-year increase of 7.22%, and a net profit of 39 million yuan, up 494.03% year-on-year [2]. - The gross margin for the first half of 2024 was 53.31%, an increase of 9.87 percentage points year-on-year, attributed to improved contract quality and reduced operational costs [2]. - The company has made breakthroughs in overseas business, establishing a partnership with a leading international company in graphics technology and AI computing, which has led to significant revenue growth from this segment [2][3]. - The company has successfully launched three self-developed chips, enhancing its competitive edge in the audio and video processing field, which is expected to contribute to long-term sustainable development [3][4]. Financial Summary - Revenue is projected to grow from 499 million yuan in 2023 to 1.562 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 35.6% [1][6]. - Net profit is expected to increase from 17 million yuan in 2023 to 332 million yuan in 2026, reflecting a significant growth trajectory [1][6]. - The company's return on equity (ROE) is forecasted to rise from 1.5% in 2023 to 19.8% in 2026, indicating improving profitability [1][7]. - The price-to-earnings (P/E) ratio is projected to decrease from 340.7 in 2023 to 17.9 in 2026, suggesting that the stock may become more attractive as earnings grow [1][7].