Incident: The company released its 2024 semi-annual report, and achieved revenue of 0.45 billion yuan in the first half of the year, up 18.0% year on year; net profit to mother was 0.04 billion yuan, down 8.6% year on year. Among them, Q2 achieved revenue of 0.25 billion yuan, a year-on-year increase of 26.8%; net profit to mother was 0.02 billion yuan, a year-on-year decrease of 27.1%, and the performance was in line with market expectations.
Revenue grew steadily, and cash flow improved significantly. 24H1, under the trend of recovering demand in the terminal market and the gradual release of the company's new products, the company achieved steady growth in revenue. 1) In terms of profit margin, due to changes in the revenue structure and loss of fair value of transactional financial assets held by the company, 24H1's gross margin and net interest rate were 36.5%/9.4%, respectively, -2.5pp/ -2.7pp; 2) In terms of cost ratio, the company's cost-side control effect was good. 24H1's sales/management/R&D expenses ratio was 2.4%/3.6%/23.0%, respectively, year-on-year; of these, R&D expenses were 0.1 billion yuan, an increase of 0.1 billion yuan, year-on-year increase 16.0% 3) In terms of cash flow, 24H1's net operating cash flow was 0.04 billion yuan, an increase of 447.9% over the previous year.
The mobile phone brand Inbox Charger has been successfully mass-produced, and has great potential in the industrial control and automotive fields. The company's broad layout includes products such as PMIC, AC-DC, DC-DC, gate drivers and supporting power devices. It develops a series of products along the “consumer-industrial-grade” vertical application requirements route. Currently, there are more than 1,700 effective product models, and the products achieved breakthroughs in multiple terminal markets during the reporting period. 1) In the field of home appliances, the company continued to improve its product layout, launched a full range of categories such as next-generation power chips, driver chips, power devices, and power modules, further expanded the market share of white and black electricity, and gradually developed overseas customers. Revenue increased by more than 20% year on year. At the same time, the introduction of the “trade-in” policy will drive a significant increase in demand in the home appliance market in the future, and revenue in the home appliance sector is expected to maintain sustainable growth in the future. 2) In the field of standard power supplies, the mobile phone brand InboxCharger entered mass production, compounding the recovery of the consumer electronics industry, and revenue increased nearly 20% year over year; the company is the main domestic power chip provider for leading manufacturers of Netcom, DVB, and mobile phone fast charging. The diversification of future standard power supply application scenarios and technological progress will drive strong growth in demand for standard power supply chips. 3) In the field of industrial power control, the company focuses on the “optical storage and charging vehicle” field. Each market segment has received more new design-win projects, gradually expanding the customer base and driving a slight year-on-year increase in overall industrial control revenue. The field of new energy vehicles is a new field that the company is actively developing after home appliances, standard power supplies, and industry. Currently, the company has completed the vehicle regulation ISO 26262 functional safety system certification, and many products have passed AEC-Q100 reliability certification, which is expected to inject momentum into the company's growth in the future.
Profit forecasting and investment advice. The company's revenue for 24-26 is expected to be 0.92/1.08/1.22 billion yuan, and net profit to mother is 0.13/0.17/0.21 billion yuan, respectively. Considering the smooth progress of the company's product introduction to customers, the obvious recovery in demand in the downstream home appliance sector, and the huge future potential in the industrial control and automotive sectors, it maintained a “buy” rating.
Risk warning: Risks such as product development falling short of expectations and downstream market demand falling short of expectations.