ThunderSoft(SZ:300496) Huachuang Securities·2024-08-28 09:13Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 46.35 CNY per share, compared to the current price of 32.30 CNY [2][3]. Core Views - The company's performance is under short-term pressure, with a focus on increasing R&D investments in cutting-edge AI technologies [2][3]. - Revenue for the first half of 2024 is reported at 2.401 billion CNY, a year-on-year decrease of 3.39%, while net profit attributable to shareholders is 104 million CNY, down 73.10% year-on-year [2][3]. - The company is experiencing challenges in its software and automotive segments, while the IoT segment shows steady growth [3]. Business Segment Summary - Intelligent Software: Revenue of 761 million CNY, down 17.67% year-on-year, affected by competitive pressures in the mid-to-low-end smartphone market [3]. - Intelligent Automotive: Revenue of 1.102 billion CNY, up 4.34% year-on-year, but growth is temporarily slowed due to longer acceptance cycles from automotive manufacturers [3]. - Intelligent IoT: Revenue of 538 million CNY, up 6.59% year-on-year, benefiting from the ongoing implementation of smart solutions in various industries [3]. - The company achieved overseas revenue of 859 million CNY in the first half of 2024, a year-on-year increase of 14.20% [3]. Financial Metrics Summary - Gross margin for the first half of 2024 is reported at 36.80%, down 4.49 percentage points year-on-year, with a net margin of 4.14%, down 9.29 percentage points year-on-year [3]. - R&D expenses are increasing, reflecting strategic investments in key areas such as operating systems for vehicles and industrial robots [3]. - Revenue projections for 2024 to 2026 are 5.483 billion CNY, 6.434 billion CNY, and 7.432 billion CNY, with growth rates of 4.6%, 17.3%, and 15.5% respectively [4]. Valuation and Price Target - The company is valued at a 45 times price-to-earnings ratio for 2024, leading to a target price of 46.35 CNY per share, reflecting a premium due to its leadership in intelligent operating systems [3].