ThunderSoft(SZ:300496) Dongxing Securities·2024-09-02 05:06Investment Rating - The report maintains a "Strong Buy" rating for the company [3][8]. Core Views - The company is currently experiencing pressure on revenue and gross profit, with smart automotive becoming the primary revenue source, while the smart IoT business is expected to create a new growth curve driven by edge intelligence development [3][4]. - The company reported a revenue of 2.401 billion yuan in the first half of 2024, a decrease of 3.39% year-on-year, with a net profit attributable to shareholders of 104 million yuan, down 73.10% year-on-year [2][8]. - The smart automotive segment generated revenue of 1.102 billion yuan, accounting for 45.91% of total revenue, with a year-on-year growth of 4.34% [3][8]. - The smart software segment saw a revenue decline of 17.67% year-on-year, contributing 31.69% to total revenue [3][8]. - The smart IoT segment achieved a revenue of 538 million yuan, a year-on-year increase of 6.59%, representing 22.40% of total revenue [3][8]. Financial Performance Summary - The company’s operating cash flow was 288 million yuan, down 30.30% year-on-year, indicating better performance than net profit due to a decrease in receivables and amortization of intangible assets [8]. - The company forecasts net profits of 378 million yuan, 636 million yuan, and 900 million yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 42, 25, and 18 times [8][9]. - The gross profit margin is projected to be 36.74% in 2024, slightly declining from previous years [9][10]. Future Outlook - The company is expected to benefit from the integration of AI technologies and edge products, which will enhance its position in the smart IoT market [3][8]. - The report emphasizes the importance of the company's software capabilities and open ecosystem in mitigating risks and creating differentiated competitive advantages [8][10].