Chipsea(SH:688595)2024-08-21 03:00Investment Rating - The investment rating for the company is "Accumulate" [1][3] Core Views - The company has shown significant revenue growth, with Q2 2024 revenue reaching approximately 199 million RMB, a quarter-on-quarter increase of 31% and a year-on-year increase of 107% [2][3] - The company's PC ecosystem chips have made breakthroughs, particularly with the EC chip overcoming overseas monopolies [3] - The signal chain products are transitioning from consumer-grade to industrial and automotive-grade applications [2][3] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of approximately 350 million RMB, a year-on-year increase of 122%, with a gross margin of about 33.4%, up 3.9 percentage points year-on-year [3] - The Q2 2024 gross margin was approximately 32.7%, showing a quarter-on-quarter decrease of 1.4 percentage points but a year-on-year increase of 2.9 percentage points [3] - The company reported a non-recurring net profit of approximately -61 million RMB in H1 2024, indicating a reduction in losses compared to the previous year [3] Product Development - The first-generation EC chip has achieved large-scale production with leading computer clients, and the second-generation EC chip has passed PCL certification [3] - The company’s USB 3.0 products have entered mass production, and the PD chip for laptops has successfully passed Thunderbolt 4 certification [3] - The company has also made progress in multi-cell BMS AFE chips for electric vehicles and energy storage markets, with high-reliability industrial-grade sensors achieving mass shipments [3] Valuation - The estimated EPS for 2024, 2025, and 2026 are -0.24 RMB, 0.17 RMB, and 0.81 RMB respectively [3] - As of August 20, 2024, the company's total market capitalization is approximately 3.4 billion RMB, corresponding to PE ratios of 141.9 and 29.9 for 2025 and 2026 respectively [3]