SANAN(SH:600703) Changjiang Securities·2024-09-25 02:40Investment Rating - The report maintains a "Buy" rating for Sanan Optoelectronics [7] Core Views - The company achieved a revenue of 7.679 billion yuan in the first half of 2024, representing a year-on-year increase of 18.70%, and a net profit attributable to shareholders of 184 million yuan, up 8.44% year-on-year [5] - The recovery in downstream demand is gradually supporting the company's revenue growth, with Q2 2024 revenue reaching 4.122 billion yuan, a year-on-year increase of 15.74% and a quarter-on-quarter increase of 15.89% [5] - The company is optimizing its inventory structure, with a net inventory value decrease of 122 million yuan compared to the beginning of the period, particularly a reduction of 178 million yuan in LED inventory [5] Summary by Sections Revenue and Profitability - In the first half of 2024, the LED epitaxial chip business revenue increased by 13.61% year-on-year, with traditional LED products up 14.60% and high-end LED products up 10.48% [5] - The gross margin for the LED business increased by nearly 5 percentage points year-on-year [5] High-end Display and IC Business - The high-end display business is accelerating, with Mini LED applications in various fields such as TVs and automotive displays, and Micro LED technology showing significant advantages [5] - The integrated circuit business saw a revenue increase of 16.85% year-on-year, with significant growth in GaAs RF foundry and filter business due to recovering market demand [6] Future Projections - The company forecasts revenues of 17.658 billion yuan, 21.057 billion yuan, and 27.856 billion yuan for 2023, 2024, and 2025 respectively, with net profits of 1.055 billion yuan, 1.712 billion yuan, and 2.695 billion yuan [6]