Giantec Semiconductor(SH:688123) AVIC Securities·2024-09-02 09:31Investment Rating - The investment rating for the company is "Buy" [30] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 515 million yuan, up 62.37% year-on-year, and net profit attributable to shareholders reaching 143 million yuan, up 124.93% year-on-year [25] - The recovery in downstream demand has led to steady growth across all product lines, with notable improvements in profitability due to optimized product structure [25][26] - The company is a leading supplier of SPD products, benefiting from the recovery in the global PC market and increased demand for DDR5 memory modules [26] - The company has successfully developed a mature series of automotive-grade EEPROM products, achieving rapid sales growth and expanding into key overseas markets [29] Financial Data and Valuation - The company achieved a gross margin of 54.70% in the first half of 2024, an increase of 7.22 percentage points year-on-year [25] - Revenue projections for 2024-2026 are estimated at 1.045 billion, 1.380 billion, and 1.695 billion yuan, respectively, with corresponding net profits of 339.75 million, 479.13 million, and 627.20 million yuan [30] - The current price-to-earnings (PE) ratios for 2024, 2025, and 2026 are projected to be 23x, 16x, and 12x, respectively [30] - The company's return on equity (ROE) is expected to improve to 15.03% in 2024 and further to 19.94% by 2026 [31]