Lion(SH:605358) Tianfeng Securities·2024-09-09 03:21Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment [2]. Core Views - The company reported significant revenue and profit growth in Q2 2024, with a revenue of 1.46 billion yuan, a year-on-year increase of 8.69%, and a net profit attributable to shareholders of -67 million yuan, a year-on-year decrease of 138.50% [1][2]. - The semiconductor silicon wafer shipment volume and revenue have significantly increased, with a 12-inch silicon wafer sales volume growing by 89.63% year-on-year [1]. - The company is facing a market adjustment in the power semiconductor sector, but sales volume remains resilient, showing a year-on-year increase of 4.96% [1]. - The compound semiconductor RF industry is rapidly growing, driven by smartphone and autonomous driving technologies, with the company achieving a revenue increase of 233.89% year-on-year in this segment [1]. Financial Performance Summary - In H1 2024, the company achieved an operating income of 1.46 billion yuan, a year-on-year increase of 8.69%, while the net profit attributable to the parent company was -67 million yuan, a decrease of 138.50% [1]. - The operating cash flow for the company was 532 million yuan, a year-on-year increase of 43.97% [1]. - The company’s silicon wafer revenue increased by 12.96% year-on-year and 15.13% quarter-on-quarter in H1 2024 [1]. - The revenue from semiconductor power devices decreased by 16.62% year-on-year, but the sales volume increased by 4.96% year-on-year [1]. Market Outlook - The global market for semiconductor power devices is expected to reach 59.6 billion USD by 2027, with significant growth driven by the electric vehicle and renewable energy sectors [1]. - The compound semiconductor RF market is projected to grow at a compound annual growth rate of 9.7% from 2019 to 2024, with the company positioned to benefit from domestic supply chain shifts [1].