BPSemi(SH:688368) Great Wall Securities·2024-09-02 10:11Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [10]. Core Views - The company's financial performance has shown significant improvement, with a 19.40% year-on-year increase in revenue for H1 2024, reaching 735 million yuan, and a 65.82% increase in net profit attributable to shareholders, amounting to -31 million yuan [1][2]. - The gross margin for H1 2024 was 35.43%, up 10.76 percentage points year-on-year, driven by product optimization and cost reduction initiatives [2]. - The company has successfully entered mass production in various sectors, including LED lighting and AC/DC power management chips, with notable partnerships established with major appliance brands [4]. Financial Summary - Revenue is projected to grow from 1,303 million yuan in 2023 to 2,344 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of approximately 24.7% [1]. - The net profit attributable to shareholders is expected to improve from -91 million yuan in 2023 to 245 million yuan in 2026, indicating a strong recovery trajectory [1][4]. - The company's EPS is forecasted to transition from -1.04 yuan in 2023 to 2.79 yuan in 2026, showcasing a significant turnaround in profitability [1][4]. Business Developments - The company has made strides in the LED lighting sector, with sales of smart LED products increasing and gaining market share through performance optimization [2]. - In the AC/DC power management segment, the company has achieved breakthroughs with major domestic and international brands, enhancing its competitive position [2][4]. - The company is actively expanding its product offerings and improving its manufacturing processes, which is expected to further enhance profitability and market share in the power management chip sector [4].