Dosilicon(SH:688110)2024-08-27 03:41Investment Rating - The investment rating for the company is "Buy" with a previous rating of "Buy" as well [1][2]. Core Views - The company has shown steady revenue growth in the first half of 2024, achieving a revenue of 266 million RMB, which is an increase of 11.12% year-on-year. However, the net profit attributable to shareholders was a loss of 91 million RMB, which is a 21.32% increase in loss compared to the previous year [2][3]. - The company is focusing on its "storage, computing, and networking" integrated strategy, which is expected to provide significant long-term growth potential [2][3]. - The semiconductor industry is experiencing a cyclical recovery, with improving supply-demand dynamics in the storage chip market, benefiting the company [2][3]. Financial Summary - The company reported a revenue of 266 million RMB in H1 2024, with a gross margin of 13.39%, which is an increase of 0.65 percentage points year-on-year [2][3]. - The company’s R&D expenses in H1 2024 were 106 million RMB, accounting for 39.72% of its revenue, reflecting a year-on-year increase of 26.31% [2][3]. - The projected revenues for 2024, 2025, and 2026 are 719 million RMB, 994 million RMB, and 1.264 billion RMB respectively, with corresponding net profits of -31 million RMB, 163 million RMB, and 269 million RMB [3][5]. Market Performance - The company's stock price is currently at 17.26 RMB, with a market capitalization of approximately 7.633 billion RMB [1][2]. - The stock has underperformed relative to the Shanghai Composite Index, with a year-to-date performance of -40% compared to the index [1][2].