Halo Micro(SH:688173) China Post Securities·2024-05-20 10:30Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][16]. Core Views - The company is a supplier of charging solutions, focusing on the mid-to-high-end market, with products such as DC/DC chips and super-fast charging chips that compete with leading domestic and international manufacturers [16]. - The company has gained recognition from numerous well-known clients in the consumer electronics sector, including Qualcomm and MediaTek, and its products are widely used in devices from brands like Samsung, Xiaomi, and OPPO [16]. - The company is rapidly advancing in automotive-grade products, having met AEC-Q100 standards and successfully shipping to several automotive manufacturers [16]. - The audio coil motor driver product line has entered the supply chains of major consumer electronics clients, contributing to revenue growth [16]. - The company is expected to achieve a net profit of -1.2 million in 2024, turning positive in 2025 and reaching 1.2 million in 2026 [16]. Financial Summary - Revenue is projected to grow from 394 million in 2023 to 1216 million by 2026, with a compound annual growth rate (CAGR) of 57.91% [6][26]. - The company anticipates a significant improvement in net profit, moving from -54 million in 2023 to 117 million in 2026, reflecting a growth rate of 890.20% [6][26]. - The earnings per share (EPS) is expected to shift from -0.13 in 2023 to 0.29 in 2026 [6][26]. - The company maintains a low debt-to-asset ratio of 9.0%, indicating a strong financial position [15][26].