FRD(SZ:300602) Minsheng Securities·2024-08-21 09:40Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company has achieved rapid growth in revenue and net profit, driven by its AI terminal and new energy businesses. In H1 2024, the company reported revenue of 2.169 billion yuan, a year-on-year increase of 22.00%, and a net profit attributable to shareholders of 57 million yuan, a staggering year-on-year increase of 1307.13% [2]. - The company is experiencing significant growth in its consumer electronics and telecommunications sectors, with increased market share and improved profitability. The new energy business is also expanding, although there are some losses from non-core investments [2][3]. - The company has effectively controlled its expense ratios, leading to a notable improvement in profitability. The gross margin for H1 2024 was 17.86%, with a net margin of 2.21%, reflecting a year-on-year increase of 2.37 percentage points [2][3]. - The company is leveraging its technological advantages to expand its customer base across various downstream applications, establishing strong partnerships with well-known domestic and international companies [2]. Financial Forecasts - The company is expected to see continued growth in net profit, with projections of 211 million yuan in 2024, 350 million yuan in 2025, and 416 million yuan in 2026. The corresponding PE ratios are forecasted to be 42X, 25X, and 21X respectively [3][5]. - Revenue is projected to grow significantly, reaching 4.346 billion yuan in 2025 and 7.715 billion yuan in 2026, with growth rates of 30.8% and 16.0% respectively [3][5].