JCET(SH:600584) Wanlian Securities·2024-08-27 13:53Investment Rating - The investment rating for the company is "Add" [5][15]. Core Views - The company reported a significant recovery in performance for Q2 2024, with total revenue reaching 86.45 billion yuan, a year-on-year increase of 36.94% and a quarter-on-quarter increase of 26.35% [4]. - The net profit attributable to shareholders for Q2 2024 was 4.84 billion yuan, reflecting a year-on-year growth of 25.51% and a substantial quarter-on-quarter increase of approximately 258% [4]. - The company is focusing on high-value-added sectors such as automotive electronics and advanced packaging technologies, which are expected to enhance its core competitiveness [11]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved total revenue of 154.87 billion yuan, up 27.22% year-on-year, and a net profit of 6.19 billion yuan, up 24.96% year-on-year [3]. - The company generated a net cash flow from operating activities of 30.3 billion yuan, with a free cash flow of 11.6 billion yuan after deducting capital expenditures [4]. Cost Management - The company maintained good cost control, with selling expenses at 0.76% of revenue, management expenses at 2.79%, and R&D expenses at 5.29% [4]. - Gross margin for H1 2024 was 13.36%, and net margin was 3.98%, both showing slight year-on-year declines [4]. Market Segmentation - Revenue distribution by application sectors in H1 2024 was as follows: communication electronics (41.3%), consumer electronics (27.2%), computing electronics (15.7%), industrial and medical electronics (7.5%), and automotive electronics (8.3%) [4]. - The communication electronics sector saw revenue growth exceeding 40% year-on-year, while the consumer electronics sector also experienced significant growth [11]. Future Outlook - The company has adjusted its revenue forecasts for 2024-2026, expecting revenues of 332.34 billion yuan, 365.83 billion yuan, and 401.03 billion yuan, representing year-on-year growth rates of 12.05%, 10.08%, and 9.62% respectively [11]. - The net profit forecasts for the same period are 18.75 billion yuan, 26.12 billion yuan, and 30.45 billion yuan, with growth rates of 27.50%, 39.27%, and 16.59% respectively [11].