LY iTECH(SZ:002600) Guotou Securities·2024-09-03 02:00Investment Rating - The report assigns a "Buy - A" investment rating to the company with a 6-month target price of 9.45 CNY, implying a dynamic P/E ratio of 35.00x for 2024 [5][14]. Core Insights - The company reported a revenue of 19.12 billion CNY for H1 2024, a year-on-year increase of 25.06%, while the net profit attributable to shareholders was 0.692 billion CNY, down 44.53% year-on-year [2]. - The growth in revenue is driven by strong demand for AI terminals, with significant contributions from mobile phones, PCs, tablets, and robotics, although the gross margin has decreased by 5.21 percentage points to 16.53% due to changes in product mix [3][4]. - The company is actively developing products and expanding its customer base in response to the growing demand for AI terminals, with notable growth in the automotive sector, particularly in the electric vehicle market [4]. Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 9.32 billion CNY, a 15.43% increase year-on-year, but a 4.89% decrease quarter-on-quarter. The net profit for the same quarter was 0.231 billion CNY, down 61.54% year-on-year and 49.82% quarter-on-quarter [2]. - The company expects revenue growth rates of 18.3%, 23.8%, and 20.9% for 2024, 2025, and 2026, respectively, with net profit growth rates of -7.2%, 59.1%, and 32.3% for the same years [7][9]. Product Development and Market Trends - The company is focusing on AI terminal-related product development, including carbon fiber components for foldable smartphones and advanced cooling solutions, which are expected to drive future growth [4][14]. - The automotive business has seen a revenue increase of 42.90% year-on-year, reaching 1.018 billion CNY, benefiting from the global growth of the new energy vehicle market [4]. Market Position and Competitive Landscape - The report highlights that the company is well-positioned to benefit from the ongoing technological revolution in the consumer electronics industry, particularly with the rise of AI technologies [7][14]. - The company’s materials business, which includes electromagnetic shielding and thermal materials, is also expected to grow in line with the development of the consumer electronics and new energy vehicle markets [10].