Investment Rating - Strong Buy (Maintained) with a target price of 262.5 RMB, compared to the current price of 162.70 RMB [1] Core Views - The company's profitability has improved year-over-year, with rapid growth in overseas revenue [1] - LED display control systems benefit from MLED penetration, solidifying the company's leading position in the industry [1] - Video processing equipment, a core component of the ultra-high-definition industry, is gaining market share overseas due to its cost-effectiveness [1] - Cloud services, represented by the dual "cloud" platforms (Screen Boss and Screen Elf), are poised for growth [1] Financial Performance - H1 2024 revenue reached 1.563 billion RMB, up 17.56% YoY, with net profit of 324 million RMB, up 37.69% YoY [1] - Q2 2024 revenue was 882 million RMB, up 13.89% YoY and 29.46% QoQ, with net profit of 202 million RMB, up 33.84% YoY and 64.71% QoQ [1] - H1 2024 gross margin was 55.54%, up 6.14 percentage points YoY, and net margin was 20.76%, up 3.04 percentage points YoY [1] - Domestic revenue in H1 2024 was 1.27 billion RMB, up 13.17% YoY, while overseas revenue was 289 million RMB, up 41.78% YoY [1] Business Segments LED Display Control Systems - Revenue from LED display control systems in H1 2024 was 757 million RMB, up 18.53% YoY, with a gross margin of 46.46%, up 7.72 percentage points YoY [1] - The global LED display market is expected to reach 12.955 billion USD by 2026, with a CAGR of 13.78% from 2021 to 2026 [1] - The small-pitch LED display market is projected to reach 10.921 billion USD by 2026, with a CAGR of 23.65% [1] - The micro-pitch LED display market is expected to reach 1.354 billion USD by 2026, with a CAGR of 40.08% [1] Video Processing Equipment - Revenue from video processing equipment in H1 2024 was 611 million RMB, up 12.26% YoY, with a gross margin of 67.21%, up 6.69 percentage points YoY [1] - The ultra-high-definition video industry in China is expected to exceed 7 trillion RMB by 2025 [1] - The company's products have a cost advantage of over 40% compared to overseas competitors, aiding in market share expansion [1] Cloud Services - Revenue from cloud services in H1 2024 was 88 million RMB, up 1.93% YoY, with a gross margin of 57.75%, up 3.18 percentage points YoY [1] - The dual "cloud" platforms (Screen Boss and Screen Elf) are highly regarded in the industry, with significant user activity [1] Financial Forecast - Expected revenue for 2024-2026: 4.213 billion RMB, 5.726 billion RMB, and 7.649 billion RMB, with YoY growth of 37.9%, 35.9%, and 33.6% respectively [1][2] - Expected net profit for 2024-2026: 809 million RMB, 1.146 billion RMB, and 1.617 billion RMB, with YoY growth of 33.2%, 41.7%, and 41.1% respectively [1][2] - The company's 2024 PE ratio is estimated at 30x, with a target market capitalization of 24.21 billion RMB [1] Industry Outlook - The LED display industry is expected to grow significantly, driven by MLED penetration and technological advancements [1] - The ultra-high-definition video industry is transitioning from 2K to 4K, with 8K products in the early stages of development [1]
诺瓦星云：2024年半年报点评：盈利能力同比提升，海外营收快速增长