TFME(SZ:002156)2024-09-03 07:10Investment Rating - The report maintains an "Outperform" rating for the company [6]. Core Views - The company has shown significant recovery across its factories, with steady progress in major project constructions. The revenue for the first half of 2024 reached 11.08 billion yuan, a year-on-year increase of 11.83%, and the net profit attributable to shareholders was 323 million yuan, marking a return to profitability [6]. - The company is actively expanding its high-performance packaging business, particularly in the server and high-computing product markets, leveraging long-term partnerships with industry leaders like AMD [6]. - The acquisition of 26% equity in Jinglong Technology for 1.378 billion yuan is expected to enhance the company's competitive edge in the high-end integrated circuit testing sector [6]. - The profit forecast for 2024-2026 has been raised, with net profit estimates adjusted to 879 million yuan, 1.087 billion yuan, and 1.402 billion yuan respectively, corresponding to PE ratios of 34, 28, and 22 [6]. Summary by Sections Market Data - Closing price as of August 30, 2024: 19.90 yuan - One-year high/low: 27.60/17.11 yuan - Market capitalization: 30,197 million yuan [3][4]. Financial Performance - Total revenue for H1 2024: 11.08 billion yuan, YoY +11.83% - Net profit for H1 2024: 323 million yuan, with a significant QoQ increase of 127.6% in Q2 [6]. - Revenue projections for 2024E: 25.265 billion yuan, with a growth rate of 13.5% [8]. Business Segments - The company is focusing on the recovery of various business segments, including mobile and consumer markets, with a notable increase in revenue from emerging markets such as RF products and advanced packaging [6]. - The new base for MCU and power devices has shown rapid growth, with a revenue increase of 140% YoY in H1 2024 [6]. Profitability Metrics - Gross margin for H1 2024: 14.2% - Return on equity (ROE) for 2024E: 5.9% [8].