Avary Holding(SZ:002938) Shanxi Securities·2024-08-15 10:30Investment Rating - The report maintains an "Accumulate-A" rating for the company [5]. Core Views - The company has shown stable revenue growth in the first half of 2024, with a year-on-year increase of 13.79% in revenue, reaching 131.26 billion yuan, although net profit decreased by 3.40% to 7.84 billion yuan [2][3]. - The company is well-positioned to capitalize on the growing demand in the AI mobile phone and server markets, with significant investments in high-end HDI and SLP production capacity [1][4]. - The company is expected to see a recovery in gross margins in the second half of 2024, driven by seasonal demand in the consumer electronics sector [3]. Financial Performance - In Q2 2024, the company achieved revenue of 64.40 billion yuan, a year-on-year increase of 32.28%, but a quarter-on-quarter decrease of 3.69% [2]. - The gross profit margin for Q2 2024 was 15.48%, showing a year-on-year increase of 0.73 percentage points, despite a quarter-on-quarter decline of 4.89 percentage points [3]. - The company’s net profit for the first half of 2024 was 7.84 billion yuan, with a gross margin of 17.97% and a net margin of 5.97% [2][3]. Future Projections - The company is projected to achieve net profits of 37.32 billion yuan, 45.17 billion yuan, and 51.90 billion yuan for the years 2024, 2025, and 2026, respectively, indicating a year-on-year growth of 13.5%, 21.0%, and 14.9% [4][5]. - Earnings per share (EPS) are expected to be 1.61 yuan, 1.95 yuan, and 2.24 yuan for the years 2024, 2025, and 2026, with corresponding price-to-earnings (P/E) ratios of 21.1, 17.4, and 15.1 [5].