JoulWatt(SH:688141) Huachuang Securities·2024-09-05 17:36Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation to outperform the benchmark index by 10%-20% over the next six months [1][17]. Core Views - The company's revenue for the first half of 2024 reached 751 million yuan, representing a year-on-year increase of 15.60%. However, the gross profit margin decreased by 3.84 percentage points to 27.79% [1]. - In the second quarter of 2024, the company achieved revenue of 421 million yuan, with a year-on-year increase of 21.17% and a quarter-on-quarter increase of 27.96%. The gross profit margin was 27.87%, showing a slight recovery [2]. - The decline in net profit for the first half of 2024 was primarily due to a decrease in product gross margin compared to the previous year, increased R&D expenses, stock incentive costs, and significant inventory write-downs [2]. - The semiconductor industry is showing signs of recovery, with inventory levels decreasing and demand for high-end products expected to drive the company's performance back to growth [2]. - The company has established a comprehensive product line in DC-DC chips and is collaborating with major clients like Intel, Xiaomi, Dell, and HP, positioning itself well for future growth [2]. - The virtual IDM model adopted by the company enhances its technological capabilities, allowing for faster product development and entry into markets such as communication computing and automotive electronics [2]. Financial Summary - For 2024E, the total revenue is projected to be 1.716 billion yuan, with a year-on-year growth rate of 32.3%. The net profit is expected to be -297 million yuan, showing a 44.1% improvement compared to the previous year [3]. - The earnings per share (EPS) for 2024E is forecasted at -0.66 yuan, with a gradual recovery expected in subsequent years [3]. - The company's total assets are estimated to reach 4.377 billion yuan by 2024E, with a debt-to-asset ratio of 45.9% [3].