ThunderSoft(SZ:300496) Dongxing Securities·2024-09-02 03:23Investment 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][3]. - The smart automotive segment generated revenue of 1.102 billion yuan, accounting for 45.91% of total revenue, showing a year-on-year growth of 4.34% [3][4]. - The smart software segment reported revenue of 761 million yuan, down 17.67% year-on-year, while the smart IoT segment achieved revenue of 538 million yuan, up 6.59% year-on-year [3][4]. Financial Performance Summary - The company’s operating cash flow was 288 million yuan, down 30.30% year-on-year, indicating better performance compared to net profit [8]. - The company’s gross margin is under pressure, with the smart automotive segment maintaining a gross margin of 44.65%, a slight decrease of 0.42 percentage points year-on-year [3][4]. - The company expects net profits for 2024, 2025, and 2026 to be 378 million yuan, 636 million yuan, and 900 million yuan respectively, with corresponding PE ratios of 42, 25, and 18 times [8][9]. Future Outlook - The company is focusing on continuous investment in sales and R&D, particularly in core technologies and innovation in edge intelligence [6][8]. - The report highlights the potential for growth in the edge intelligence sector as AI technology matures and market recognition increases [3][4].