Xinyichang(SH:688383) Shanghai Securities·2024-09-04 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 560 million yuan (up 3.93% year-on-year) and net profit attributable to shareholders at 66 million yuan (up 50.33% year-on-year) [4][5] - The company's gross profit margin improved to 35.04% in the first half of 2024, driven by the solid crystal machine business, which achieved a gross margin of 35.90% [5] - The Mini LED industry is rapidly developing, with the company positioned as a leading player in the domestic LED solid crystal machine market, actively investing in R&D for Mini/Micro LED manufacturing equipment [5] - The company is expanding into the semiconductor equipment sector, providing customized services to well-known companies such as Huawei and Changdian Technology [5] Summary by Sections Financial Performance - In the first half of 2024, the company achieved a revenue of 560 million yuan, with a quarterly revenue of 297 million yuan in Q2, marking a year-on-year increase of 64.39% [4] - The projected net profit for 2024-2026 is expected to be 158 million yuan, 222 million yuan, and 325 million yuan respectively, with corresponding P/E ratios of 29, 21, and 14 times [6][7] Market Position and Growth Potential - The Mini LED television market share in China reached 5.7% in volume and 13.5% in sales value in the first half of 2024, with global shipments expected to grow by 55% [5] - The company has established partnerships with major clients in the LED sector, including BOE Technology Group and others, enhancing its market presence [5] Future Outlook - The company is expected to continue its growth trajectory, with revenue projected to increase from 1.04 billion yuan in 2023 to 2.30 billion yuan in 2026, reflecting a compound annual growth rate of 31.9% [7][11] - The gross margin is anticipated to improve from 33.5% in 2023 to 37.7% in 2026, indicating enhanced profitability [11]