Vanchip (Tianjin) Technology (SH:688153) Soochow Securities·2024-09-03 09:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is a leader in the RF industry, with continuous improvement in profitability. In H1 2024, total revenue reached 1.1 billion yuan (up 20% year-on-year), and net profit attributable to shareholders was 11 million yuan (turning profitable, an increase of 81 million yuan compared to the same period last year) [3] - The consumer electronics market is recovering, with new Android clients contributing to production capacity. The market share of domestic RF front-end chips in 5G smartphones continues to grow, and the company has successfully entered the supply chains of major smartphone manufacturers [3] - The company has achieved mass production of the L-PAMiD product, positioning itself as a comprehensive supplier of RF front-end solutions. The modular approach aligns with the industry's trend towards upgraded RF front-end solutions [3] Financial Forecast and Valuation - Revenue forecasts for 2024-2026 have been adjusted downwards due to declining demand in the consumer electronics market. The net profit attributable to shareholders is projected to be 140 million yuan in 2024, 210 million yuan in 2025, and 360 million yuan in 2026 [4] - Despite the adjustments, the company is expected to experience rapid growth in performance as demand increases, maintaining a "Buy" rating [4] Market Data - The closing price of the stock is 28.30 yuan, with a market capitalization of 12.17 billion yuan [6] - The price-to-earnings ratio (P/E) based on the latest diluted earnings per share is 194.95 for 2023, projected to decrease to 60.03 by 2026 [10] Basic Data - The company has a total share capital of 430 million shares, with a net asset per share of 9.64 yuan [7]