OLYMPIC(603920) 华创证券·2024-08-22 16:36Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 23.5 CNY, compared to the current price of 18.99 CNY [1]. Core Views - The company's performance in the first half of 2024 met expectations, driven by strong demand in the automotive and data communication sectors. The company achieved a revenue of 2.396 billion CNY (YOY +11.38%), a gross margin of 22.76% (YOY +5.15 percentage points), and a net profit attributable to shareholders of 303 million CNY (YOY +54.49%) [1]. - The growth in profits is attributed to several factors: the overall recovery in the electronics industry, the company's proactive business expansion, and the optimization of product structure, which has led to improved gross margins. Additionally, the depreciation of the RMB against the USD has resulted in foreign exchange gains [1]. - The company has established a strong foothold in the automotive PCB market, collaborating with leading clients such as Tesla and BMW. The long-term trend towards electric and intelligent vehicles is expected to boost the demand for automotive PCBs [1]. - The report forecasts the company's net profit for 2024-2026 to be 613 million CNY, 700 million CNY, and 823 million CNY, respectively, indicating a robust growth outlook [2]. Financial Summary - For the first half of 2024, the company reported a revenue of 2.396 billion CNY, with a net profit of 303 million CNY, reflecting a year-over-year increase of 54.49% [1]. - The second quarter of 2024 saw a revenue of 1.302 billion CNY (YOY +14.65%, QOQ +19.09%) and a net profit of 194 million CNY (YOY +60.54%, QOQ +78.78%) [1]. - The company is projected to achieve total revenues of 5.461 billion CNY in 2024, with a year-over-year growth rate of 20.8% [2]. Market Position and Growth Drivers - The company is well-positioned in the automotive and data communication PCB sectors, with a focus on emerging technologies such as AI and 5G, which require advanced PCB materials and manufacturing processes [1]. - The report highlights the company's strategic initiatives in expanding its product offerings and enhancing its technological capabilities, which are expected to drive future growth [1].