SHENGYI ELECTRONICS CO.(SH:688183) Huachuang Securities·2024-08-28 12:45Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [17]. Core Views - The company's performance in H1 2024 met expectations, with significant growth driven by AI servers and 800G switches, which are anticipated to accelerate revenue growth [1][2]. - The company achieved a revenue of 1.973 billion yuan in H1 2024, representing a year-over-year increase of 24.64%, and a net profit of 96 million yuan, reflecting a remarkable year-over-year increase of 903.93% [1]. - The report highlights a turning point in Q2 2024, with continuous improvement in profit margins due to optimized product structure and increased demand for high-layer PCBs in the server market [2]. Financial Performance Summary - In Q2 2024, the company reported revenue of 1.089 billion yuan, a year-over-year increase of 29.52% and a quarter-over-quarter increase of 23.05% [1]. - The gross profit margin for Q2 2024 was 20.36%, up 3.95 percentage points year-over-year and 1.48 percentage points quarter-over-quarter [1]. - The company’s R&D investment in H1 2024 was 116 million yuan, a year-over-year increase of 29.67%, focusing on core strengths and new product development [2]. Future Growth Drivers - The company has completed multiple customer project certifications for AI servers and has begun large-scale deliveries, with expectations for increased demand for PCBs used in AI servers [2]. - The 800G switch products are also expected to ramp up production, with small batch deliveries already achieved and ongoing development of next-generation products [2]. - The automotive sector is seeing steady growth in orders due to the development and market promotion of advanced products for autonomous driving and smart cockpits [2]. Financial Forecast - The report forecasts net profits of 186 million yuan, 545 million yuan, and 816 million yuan for 2024, 2025, and 2026 respectively, indicating substantial growth potential [3][7]. - The projected revenue for 2024 is 4.459 billion yuan, with a year-over-year growth rate of 36.2% [3].