Dosilicon(SH:688110) Yong Xing Zheng Quan·2024-08-27 07:46Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a significant increase in Q2 revenue, with a year-on-year growth of 38.20% and a quarter-on-quarter growth of 50.64%, indicating a potential recovery in industry conditions [2]. - The company is expanding its presence in key applications such as network communication, surveillance, and automotive electronics, which contributed to a substantial increase in sales volume [2]. - The increase in R&D expenses, amounting to approximately 1.06 billion yuan, is a primary reason for the company's inability to achieve profitability [2]. - The company plans to invest 200 million yuan in Shanghai Lishuan, acquiring a 37.88% stake, which will enhance its capabilities in chip design and computing power [2]. Financial Summary - For the first half of 2024, the company achieved revenue of approximately 266 million yuan, a year-on-year increase of 11.12%, while the net profit attributable to shareholders was approximately -91 million yuan, reflecting a year-on-year loss increase of 16 million yuan [2]. - The projected net profits for 2024-2026 are estimated at 70 million, 206 million, and 335 million yuan, respectively, with corresponding EPS of 0.16, 0.47, and 0.76 yuan [3]. - The company’s revenue is expected to grow significantly, with a forecasted increase of 65.2% in 2024 and 55.8% in 2025 [3].