LONGLI(SZ:300752) ZHESHANG SECURITIES·2024-08-31 06:23Investment Rating - The investment rating for the company is "Buy" [2][3]. Core Views - The company reported significant improvements in performance, with a 55% year-on-year increase in revenue to 620 million yuan and a 529% increase in net profit attributable to shareholders to 50 million yuan in the first half of 2024 [1]. - The strategic shift from focusing on market share to prioritizing profitability has begun to yield positive results, as the company optimizes its product structure and expands into new business areas [1]. - The company is deepening its Mini-LED business and optimizing its product structure, focusing on sectors such as automotive displays, smart wearables, and gaming monitors [1]. Financial Summary - The company achieved revenues of 1.6 billion, 2.4 billion, 3.1 billion, and 3.2 billion yuan in the first two quarters of 2023 and 2024, with year-on-year growth rates of -51%, -37%, +2%, and +33% respectively [1]. - The forecast for net profit attributable to shareholders for 2024-2026 is 100 million, 140 million, and 210 million yuan, representing year-on-year growth rates of 112%, 46%, and 48% [2]. - The company’s revenue is expected to grow from 1.026 billion yuan in 2023 to 1.968 billion yuan in 2026, with a compound annual growth rate of 66% from 2023 to 2026 [2]. Strategic Developments - The company has launched a stock option incentive plan in March 2024, with 7 million options representing 3.1% of the total share capital, aiming for revenue growth rates of no less than 20% and 50% for 2024 and 2025 respectively [1]. - The company has repurchased 3.14 million shares, accounting for 1.39% of the total share capital, with a transaction amount of approximately 40 million yuan [1].