Bluetrum(SH:688332) Huachuang Securities·2024-08-16 04:38Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 75 CNY, compared to the current price of 52.33 CNY [1][2]. Core Insights - The company achieved a record high revenue of 7.91 billion CNY in the first half of 2024, representing a year-over-year increase of 21.11%. The net profit attributable to shareholders was 1.35 billion CNY, up 19.83% year-over-year [1][2]. - In Q2 2024, the company reported revenue of 4.28 billion CNY, a year-over-year increase of 23.71% and a quarter-over-quarter increase of 17.94%. The net profit attributable to shareholders for this quarter was 0.80 billion CNY, reflecting a year-over-year growth of 26.70% and a quarter-over-quarter growth of 45.30% [1][2]. Summary by Sections Financial Performance - The company’s Q2 2024 gross margin was 23.35%, showing a slight decrease of 0.99 percentage points year-over-year but an increase of 2.92 percentage points quarter-over-quarter. The non-GAAP net profit margin for Q2 was 14.86%, up 1.39 percentage points year-over-year and 2.24 percentage points quarter-over-quarter [2]. - The company expects net profits for 2024-2026 to be 3.01 billion CNY, 4.06 billion CNY, and 4.86 billion CNY respectively, with corresponding EPS of 2.50 CNY, 3.37 CNY, and 4.04 CNY [2][3]. Market Expansion - The company is making significant inroads into high-end markets and steadily expanding into emerging markets. It has established partnerships with various well-known brands and is focusing on increasing brand penetration [2]. - The report highlights the resilience of demand for cost-effective products in the global electronics market, particularly in India, where the penetration rate for Bluetooth headphones is expected to rise from 25% in 2023 to 37% by 2027 [2]. Product Development - The company has diversified its product offerings across multiple segments, including smart wearables, BLE chips, and wireless microphone chips. It has completed a comprehensive product layout for smart wearables and achieved mass production of BLE chips for major platforms [2]. - The company’s wireless microphone solutions are recognized as industry-leading, contributing to its competitive edge in the market [2].