Avary Holding(SZ:002938) Guoxin Securities·2024-08-16 00:30Investment Rating - The investment rating for the company is "Outperform the Market" [3] Core Views - The company has shown significant recovery in consumer electronics, with impressive growth in server and automotive boards. In the first half of 2024, the company achieved a revenue of 13.126 billion yuan, a year-on-year increase of 13.79%, while the net profit attributable to the parent company was 784 million yuan, a decrease of 3.40% year-on-year [1][3] - The company is actively increasing R&D investments to capture trends in AI innovation and is expanding production capacity for high-end applications. The construction of advanced manufacturing projects is underway in various locations, including Huai'an and Taiwan, targeting AI and high-performance server products [1][3] Financial Performance Summary - In 1H24, the company's communication board business generated revenue of 8.730 billion yuan (YoY +3.68%), while the consumer electronics and computer board business achieved 3.931 billion yuan (YoY +36.57%). The automotive and server products saw a remarkable revenue of 430 million yuan (YoY +94.31%) [1] - The company reported a gross margin of 15.48% in 2Q24 (YoY +0.73 percentage points, QoQ -4.89 percentage points) and a net margin of 4.46% (YoY -3.62 percentage points, QoQ -2.98 percentage points) [1] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 3.6 billion, 4.8 billion, and 5.4 billion yuan respectively, with year-on-year growth rates of 10%, 33%, and 12% [1][3]