Chipown(SH:688508) Southwest Securities·2024-08-20 10:00Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 33.36 yuan and a target price not specified for the next six months [1]. Core Insights - The company reported a revenue of 450 million yuan for the first half of 2024, representing an 18.0% year-on-year increase, while the net profit attributable to shareholders decreased by 8.6% to 40 million yuan. In Q2 alone, revenue reached 250 million yuan, up 26.8% year-on-year, but net profit fell by 27.1% to 20 million yuan, aligning with market expectations [1]. - The company has shown significant improvement in cash flow, with a net cash flow from operating activities of 40 million yuan, a remarkable increase of 447.9% year-on-year [1]. - The company is expanding its product offerings in various sectors, including home appliances, standard power supplies, and industrial control, with over 1,700 effective product models developed [2]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved a gross margin of 36.5% and a net margin of 9.4%, both down by 2.5 percentage points and 2.7 percentage points year-on-year, respectively. The company effectively managed its expenses, with sales, management, and R&D expense ratios at 2.4%, 3.6%, and 23.0%, showing slight decreases year-on-year [1]. - Revenue projections for 2024 to 2026 are estimated at 922.36 million yuan, 1.07541 billion yuan, and 1.21641 billion yuan, respectively, with net profits expected to be 126.23 million yuan, 169.22 million yuan, and 214.52 million yuan [3]. Market Opportunities - The home appliance sector is expected to see sustained growth due to the introduction of new products and government policies promoting upgrades, with revenue growth exceeding 20% year-on-year [2]. - The company has successfully launched the Inbox Charger for mobile devices, with a nearly 20% year-on-year revenue increase in the standard power supply segment, driven by the recovery in the consumer electronics industry [2]. - The industrial control sector is also showing potential, particularly in the "light-storage-charging" area, with several new design wins and a focus on the new energy vehicle market [2].