Giantec Semiconductor(SH:688123) Shanxi Securities·2024-08-13 12:00Investment Rating - The report upgrades the investment rating of the company to "Buy-A" [1][4]. Core Insights - The company achieved a record high revenue of 515 million yuan in the first half of 2024, representing a year-on-year growth of 62.37%. The net profit attributable to shareholders reached 143 million yuan, up 124.93% year-on-year [1][2]. - The significant growth in revenue and profit is attributed to the recovery in market demand and the rapid increase in the shipment of multiple products, including SPD products, NOR Flash products, and automotive-grade EEPROM products [2][4]. - The gross profit margin improved to 54.70%, an increase of 7.22 percentage points year-on-year, driven by a higher sales proportion of high-value-added products [2][4]. Financial Performance Summary - For the second quarter of 2024, the company reported revenue of 267 million yuan, a year-on-year increase of 54.02% and a quarter-on-quarter increase of 8.18%. The net profit for the same period was 92 million yuan, reflecting a year-on-year growth of 118.24% and a quarter-on-quarter growth of 79.82% [1][2]. - The company’s net profit margin for the first half of 2024 was 26.76%, up 9.25 percentage points year-on-year, attributed to the increase in gross margin and a decrease in sales, management, and R&D expense ratios [2][4]. Product and Market Analysis - The company’s SPD products have gained significant traction in the market, particularly in the DDR5 memory module sector, which is expected to see a penetration rate of 60% in the third quarter of 2024 [2][4]. - The NOR Flash products are currently experiencing rapid growth, with shipments exceeding 170 million units, and the company is positioned to capture a larger market share as it continues to innovate and expand its product lines [2][3]. Financial Projections - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 2.14 yuan, 3.24 yuan, and 4.39 yuan, respectively. The corresponding price-to-earnings (P/E) ratios are expected to be 22.9, 15.1, and 11.1 times [4][5]. - Revenue forecasts for 2024, 2025, and 2026 are 1.083 billion yuan, 1.441 billion yuan, and 1.726 billion yuan, with year-on-year growth rates of 53.9%, 33.0%, and 19.8% respectively [4][5].