Desay SV(SZ:002920)2024-08-21 09:09Investment Rating - The report maintains a "Buy" rating for Desay SV [6][12] Core Views - Desay SV's 2024H1 operating results show revenue in line with expectations at 11.69 billion yuan, a year-on-year increase of 34%, and net profit exceeding expectations at 838 million yuan, a year-on-year increase of 38.11% [5][8] - The improvement in gross margin is primarily driven by the ADAS business, with Q2 gross margin reaching 21.25%, marking significant improvements both quarter-on-quarter and year-on-year [5][8] - Cash flow and other key quality indicators are also strong, with accounts receivable and inventory showing minimal increases, indicating healthy operations [5][10] Summary by Sections Financial Performance - For 2024H1, Desay SV achieved revenue of 11.69 billion yuan and net profit of 838 million yuan, both exceeding previous forecasts [5][8] - The company’s gross margin improved significantly, particularly in the ADAS segment, which reached 18.9% in Q2, the highest in a year [5][8] Business Segments - The ADAS and cockpit electronics segments saw revenue growth of 45% and 27.4% respectively in 2024H1, meeting expectations [5][10] - New product developments in ADAS, including IPU04 and next-generation products, have been successfully launched, with significant orders from major automotive clients [10][12] R&D and Efficiency - Despite ongoing R&D and commercial breakthroughs, the report highlights optimistic trends in R&D efficiency and compensation plans, with R&D expenses growing only 8% year-on-year, below revenue growth [5][10] - The company’s operational efficiency is underscored by a notable increase in cash inflows compared to salary growth rates, indicating effective cost management [10][12] Future Projections - Revenue forecasts for 2024-2026 are set at 27.02 billion, 34.03 billion, and 42.27 billion yuan respectively, with net profits projected at 2.25 billion, 2.83 billion, and 3.54 billion yuan [6][12]