Novoray(SH:688300) Shanxi Securities·2024-08-28 20:30Investment Rating - The report maintains a "Buy-B" rating for the company, indicating an expected price increase of over 15% compared to the benchmark index [1]. Core Views - The semiconductor market demand has rebounded, leading to significant revenue growth and profit improvement for the company. The second quarter saw a revenue of 241 million yuan, a year-on-year increase of 42.60% and a quarter-on-quarter increase of 19.18%. The net profit attributable to the parent company reached 66 million yuan, up 48.49% year-on-year and 27.36% quarter-on-quarter [1][2]. - The high-bandwidth memory (HBM) market is projected to grow at a compound annual growth rate of 26.10% over the next few years, benefiting the company's high-end silicon micro-powder sales and further enhancing its profitability [1]. - The company is expected to achieve net profits of 255 million, 311 million, and 385 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding earnings per share (EPS) of 1.37, 1.67, and 2.07 yuan [1]. Financial Performance - In the first half of 2024, the company reported a revenue of 443 million yuan, a year-on-year increase of 41.15%, and a net profit of 117 million yuan, up 60.86% year-on-year. The non-recurring net profit was 106 million yuan, reflecting a 70.32% increase year-on-year [2]. - The company's gross margin improved to 41.84% in the first half of 2024, an increase of 3.70 percentage points year-on-year, while the net profit margin reached 26.50%, up 3.25 percentage points year-on-year [3]. - The projected financials for the company show a steady increase in revenue and net profit over the next few years, with revenue expected to reach 965 million yuan in 2024 and 1.343 billion yuan in 2026, alongside a gradual improvement in profit margins [4][5].