Rockchip(SH:603893) HTSC·2024-08-28 00:03Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 68.10 [1][5]. Core Insights - The company has shown a strong recovery in AIoT demand, with significant growth in its flagship chip RK3588. The revenue for Q2 2024 reached RMB 706 million, representing a year-over-year increase of 34.83% and a quarter-over-quarter increase of 29.91% [2][3]. - The gross margin improved to 36.86%, up 2.19 percentage points from the previous quarter, driven by product mix changes and effective cost control [2][3]. - The company is expected to benefit from the AIoT trend, with new product launches and a revamped marketing strategy aimed at enhancing product line focus [4][5]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a net profit of RMB 115 million, a year-over-year increase of 166.62% and a quarter-over-quarter increase of 70.17% [2]. - The gross margin for Q2 2024 was 36.86%, reflecting a year-over-year increase of 2.63 percentage points [3]. - The company has adjusted its net profit forecasts for 2024, 2025, and 2026 to RMB 4.05 billion, RMB 6.21 billion, and RMB 9.20 billion respectively [2][5]. Product Development - The company has launched several new products, including the RK3576 and RK2118 processors, which are expected to drive growth in the second half of the year [4]. - The company maintains a consistent R&D investment of approximately 20% of revenue, with R&D expenses for Q2 2024 amounting to RMB 141 million [3]. Market Outlook - The company is focusing on key sectors such as automotive electronics, machine vision, and industrial applications to enhance its product offerings and market presence [4]. - The marketing strategy has been restructured to be product line-oriented, aiming for better alignment with leading customers in target scenarios [4].