XGIMI(SH:688696) Huachuang Securities·2024-09-04 10:10Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 70 yuan, compared to the current price of 56.70 yuan [1]. Core Insights - The company achieved a revenue of 1.6 billion yuan in H1 2024, a year-on-year decrease of 1.66%, with a net profit attributable to shareholders of 0.04 million yuan, down 95.58% year-on-year. In Q2 2024, revenue was 774 million yuan, showing a year-on-year increase of 4.2%, while the net profit was a loss of 0.1 million yuan, down 125.2% year-on-year [1]. - Q2 revenue growth turned positive for the first time in seven quarters, driven by strong overseas sales performance. Domestic demand for smart micro-projectors remains weak, but the company's overseas market expansion is showing results, with foreign sales accounting for 28% of total revenue [1]. - The decline in product pricing and the increase in low-margin products have negatively impacted profits. The company reported a gross margin of 30.2% in Q2 2024, down 3.8 percentage points year-on-year. The company is actively controlling expenses, resulting in a decrease in the expense ratio [1]. - The company is gradually improving its overseas layout, maintaining its leadership position in the domestic projection industry. As of 2023, the company has been the top shipper in the Chinese projection equipment market for six consecutive years and has entered major retail channels in Europe, the US, and Japan [1]. - Due to intense industry competition and a decline in product structure, the company has adjusted its net profit forecasts for 2024-2026 to 107 million, 143 million, and 205 million yuan, respectively, with corresponding PE ratios of 37, 28, and 19 times [1]. Financial Summary - In H1 2024, the company's total revenue was 1.6 billion yuan, with a breakdown of 1.49 billion yuan from projectors and accessories (down 4.5% year-on-year) and 90 million yuan from internet value-added services (up 78.8% year-on-year) [1]. - The company's domestic and overseas revenues for H1 2024 were 1.13 billion yuan (down 10.3% year-on-year) and 450 million yuan (up 28.0% year-on-year), respectively [1]. - The company reported a total asset value of 5.582 billion yuan and a debt-to-asset ratio of 45.07% [3].