行业上行期+多产品放量，上半年增长显著。2024H1，公司实现收入9.20 亿元、同比+37.96%，实现归母净利润1.52 亿元、同比+134.85%，扣非归母净利润为1.46 亿元、同比+170.12%，毛利率为43.20%、同比+2.35pct，低价成本+新客户增加的前期小量高毛利+芯片占比的提升，助力公司毛利率增长。分产品而言，芯片、模组占营收比重分别为41.4%、57.8%，毛利率分别为49.0%、38.9%，同比+1.5pct、1.4pct。Description of the event
On July 29, 2024, Lexin Technology announced the “2024 Semi-Annual Report”. In the first half of 2024, the company achieved revenue of 0.92 billion yuan, +37.96% year over year, achieved net profit of 0.152 billion yuan, +134.85% year over year, net profit after deducting non-return to mother was 0.146 billion yuan, +170.12% year over year. With 2024Q2, the company achieved revenue of 0.533 billion yuan, +52.78% YoY, +37.66% month-on-month, realized net profit of 0.098 billion yuan, +191.87% YoY, +81.26% month-on-month, net profit of 0.098 billion yuan after deducting non-attributable net profit of 0.098 billion yuan, +242.78% YoY and +104.08% month-on-month.
Incident comments
The industry's upward period+multi-product release increased significantly in the first half of the year. With 2024H1, the company achieved revenue of 0.92 billion yuan, +37.96% year over year, net profit of 0.152 billion yuan, +134.85% year over year, net profit without return to mother of 0.146 billion yuan, +170.12% year over year, gross margin of 43.20%, +2.35 pct year over year, low cost plus increase in the share of small amount of high gross margin and chip share in the early period, helping the company increase in gross margin. By product, chips and modules accounted for 41.4% and 57.8% of revenue, respectively, and gross margins were 49.0% and 38.9%, respectively, +1.5pct and 1.4pct compared to the same period.
The advantage of scale was evident, and the second-quarter results showed a high year-on-month increase. With 2024Q2, the company achieved revenue of 0.533 billion yuan, +52.78% year over month, and continued sales of new products and new customers. Revenue increased significantly in the second quarter; achieved net profit of 0.098 billion yuan, +191.87% year over month, and +81.26% month over month, net profit without return to mother was 0.098 billion yuan, +242.78% year on month, and +104.08% month on month. The scale advantage was evident, and the second quarter's performance increased significantly from month to month; gross margin was 44.1%, same year on month; Ratio +3.14pct, month-on-month ratio +2.18pct
Starting from a WiFi MCU and growing to a Wireless SoC, the product matrix built the company's core competitiveness. Lexin Technology continues to develop the product layout in the direction of “processing+connection”. The company has now launched 12 different chip product lines. Self-developed 32-bit processors based on the RISC-V architecture have achieved the main frequency from single-core 96MHz to dual-core 400MHz. The connectivity aspects include Wi-Fi, Bluetooth, Thread, and Zigbee technologies. After covering Wi-Fi 4, Wi-Fi 5, and Wi-Fi 6 technologies, WiFi6e products have been successfully developed. In the smart home and consumer electronics sector, the company has achieved a high penetration rate for products that require short-range wireless connectivity. The company continues to increase the layout of edge-side AI capabilities. Its ESP32-S3 can achieve high-performance applications such as image recognition, voice wake-up, and recognition, and demand in LCD screen-related applications and AI voice control markets has shown significant growth; the ESP32-P4 product line integrates an H264 encoder and is equipped with AI expansion instructions to better support HMI applications. It is the company's first SoC without wireless connectivity to break through the communication+IoT market and enter the multimedia market. It can meet the needs of customers with high requirements for edge computing capabilities.
With the collaborative development of software and hardware, the long-term growth trend of leading IoT communication chips has not changed. With the rapid development of the IoT industry, the improvement of Lexin Technology's own technical capabilities and continuous improvement of products in the direction of high performance and cost performance have helped the company's product application scenarios and the number of downstream customers continue to increase, laying a firm foundation for the company's steady development in the medium to long term.
On the product side, the company's next new product is in a period of rapid release, and the new product reserve is building a subsequent growth point. We expect net profit to be 0.37/0.481/0.592 billion in 2024-2026, respectively, maintaining a “buy” rating.
Risk warning
1. There is uncertainty about mass production of new products;
2. There is uncertainty in the electronic terminal consumer market.
