Investment Rating - The report maintains a BUY rating on BaTeLab with an unchanged target price (TP) of HK$49.8, based on a 19x 2024E P/E ratio [1][3]. Core Insights - BaTeLab reported strong 1H24 earnings with revenue growth of 42.1% YoY to RMB291 million, driven by new product launches, strengthened partnerships, and an expanded distribution network [1]. - Net profit for 1H24 increased by 46.3% YoY to RMB67 million, with revenue and net profit accounting for 45% and 46% of full-year estimates, respectively [1]. - The company is recognized as a leading provider of industrial-grade analog IC patterned wafers in China, supported by proprietary EDA tools and a reusable IP library [1]. Financial Summary - Revenue projections for FY24 are set at RMB650 million, reflecting a YoY growth of 40.2%, with further growth expected at 37.8% in FY25 and 36.1% in FY26 [2][8]. - Gross margin is expected to stabilize between 53% and 55% for 2024-2026, despite a decline to 51.3% in 1H24 due to higher inventory provisions [1][2]. - The company’s operating profit for FY24 is estimated at RMB154.4 million, with a net profit of RMB146.3 million, indicating a YoY growth of 34% [2][8]. Market Position and Strategy - BaTeLab has expanded its SKU offerings to over 500 in 1H24, confirming its R&D capabilities and management execution [1]. - The company has strengthened its partnerships with distributors, with 90% of revenue coming from distributor sales in 1H24, up from 87.5% in FY23 [1]. - The stock is currently trading at a P/E of 10x for 2024E, which is considered attractive compared to its semiconductor peers [1][3].
贝克微：Strong 1H24 results signal brighter days ahead