USISH(601231) 长城证券·2024-09-05 02:40Investment Rating - The report maintains a "Buy" rating for the company, reflecting confidence in its growth prospects driven by AI and SiP technologies [1][4] Core Views - The company's 24H1 performance showed steady growth with revenue of 27.386 billion yuan, up 1.94% YoY, and net profit of 784 million yuan, up 2.23% YoY [1] - The company's SiP business is expected to benefit from the recovery in consumer electronics demand and the "AI+" trend, while its cloud storage business is poised for growth due to increasing demand for AI servers and switches [4] - The automotive electronics business is expected to grow rapidly, driven by the acquisition of Hirschmann Car Communication and the company's existing strengths in wireless communication modules [4] Financial Performance - Revenue for 2024E is projected at 65.205 billion yuan, with a YoY growth of 7.3%, and net profit is expected to reach 2.144 billion yuan, up 10.1% YoY [1] - The company's ROE is forecasted to improve from 11.5% in 2024E to 14.4% in 2026E, reflecting enhanced profitability [1] - EPS is expected to grow from 0.97 yuan in 2024E to 1.50 yuan in 2026E, with a corresponding decline in P/E ratio from 16.0x to 10.3x [1] Business Segments - Cloud and storage revenue grew by 38.96% YoY in 24H1, driven by industry demand recovery and new technology applications [2] - Automotive electronics revenue increased by 37.24% YoY in 24H1, benefiting from the consolidation of Hirschmann Car Communication and organic growth [2] - Industrial product revenue declined by 17.55% YoY in 24H1 due to weak downstream demand, despite a sequential recovery in Q2 [2] Technological Advancements - The company is investing in advanced SiP technology to meet the demand for highly integrated smart terminal products, driven by AI advancements [2] - SiP technology is expected to play a key role in addressing the design complexity of smart wearable devices, particularly in space-constrained products like smart glasses [2] Future Outlook - The company expects Q3 revenue growth to outperform the 16.8% YoY growth seen in the same period last year, with improved operating margins [2] - The cloud storage business is projected to grow significantly in 2024, with AI-related server business expected to nearly double [4] - The automotive electronics business is expected to maintain strong growth momentum, supported by investments in powertrain and power module technologies [4]