Desay SV(002920) 兴业证券·2024-08-27 09:46Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - The company reported significant growth in revenue and net profit for the first half of 2024, with revenue reaching 11.69 billion yuan, a year-on-year increase of 34.0%, and net profit attributable to shareholders at 840 million yuan, up 38.1% year-on-year [4][5]. - The second quarter of 2024 saw revenue of 6.04 billion yuan, with year-on-year growth of 27.5% and a net profit of 450 million yuan, reflecting a 64.1% increase year-on-year [4][5]. - The company is accelerating its expansion in the European market, establishing a new technology park in Weimar, Germany, and opening an office in Paris, France [5][6]. - The gross margin improved in Q2 2024, attributed to the price reduction of NVIDIA chips and an increase in new projects from companies like Xiaomi [5][6]. Summary by Sections Financial Performance - For H1 2024, the company's revenue was 11.69 billion yuan, with a net profit of 840 million yuan and a non-recurring net profit of 790 million yuan, showing year-on-year increases of 34.0%, 38.1%, and 49.7% respectively [4][5]. - In Q2 2024, the gross margin was 21.3%, up 1.9 percentage points year-on-year, driven by cost reductions and new project contributions [5][6]. Business Segments - The smart cockpit business generated 7.97 billion yuan in H1 2024, a 27.4% increase year-on-year, while the smart driving business reached 2.67 billion yuan, up 22.8% year-on-year [4][5]. - The company has secured multiple new project orders from major automotive clients, including Li Auto, GAC, and Geely, for its fourth-generation smart cockpit and high-performance smart driving controllers [6]. Market Expansion - The company is focusing on local production capabilities in Europe to enhance delivery speed and service responsiveness to market demands [5][6]. - The establishment of a smart factory in Spain is part of the company's strategy to strengthen its presence in the European market [5][6]. Profitability Forecast - The company has adjusted its net profit forecasts for 2024-2026 to 2.044 billion yuan, 2.884 billion yuan, and 3.660 billion yuan respectively, reflecting strong growth expectations [6].