中科创达：毛利率下行业绩承压，强化研发投入发力端侧智能

Investment Rating - The investment rating for the company is "Buy," maintaining the previous rating of "Buy" [1]. Core Views - The company's revenue for the first half of 2024 was CNY 2.401 billion, a year-on-year decrease of 3.39%, while the net profit attributable to the parent company was CNY 104 million, down 73.10% year-on-year [1]. - The company is facing pressure on performance due to downstream demand, but its overseas business is maintaining growth [1]. - The company is increasing its investment in edge intelligence, aiming to enhance its core capabilities in smart terminals [1][2]. Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of CNY 1.223 billion, a year-on-year decrease of 7.27%, and a net profit of CNY 14 million, down 93.80% year-on-year [1]. - The gross margin decreased by 4.49 percentage points compared to the same period last year [1]. - The smart automotive segment generated revenue of CNY 1.102 billion, up 4.34% year-on-year, while the smart software segment saw revenue drop by 17.67% [1]. - The company’s revenue from domestic markets was CNY 1.542 billion, down 11.02% year-on-year, while revenue from Europe and the US was CNY 440 million, up 2.58% [1]. Research and Development - R&D expenses increased by CNY 52.898 million in the first half of 2024, a rise of 11.94% year-on-year [1]. - The company is focusing on edge intelligence, with plans to integrate existing products and technologies into this area [1]. Market Outlook - The company is expected to benefit from the ongoing trend of automotive intelligence, with projected EPS for 2024-2026 at CNY 0.57, CNY 1.12, and CNY 1.40, respectively [2]. - The P/E ratios for the same period are projected to be 57.94, 29.29, and 23.41 [2].