We are actively looking forward to full-year results, and new products and new markets will continue to gain strength. The company released its semi-annual report, and achieved revenue of 3.016 billion yuan in the first half of 2024, an increase of 28.33% over the previous year; net profit attributable to the owners of the parent company was 0.362 billion yuan, an increase of 96.06% over the previous year. Among them, the second quarter achieved revenue of 1.638 billion yuan, up 24.53% year on year and 18.82% month on month; net profit attributable to owners of the parent company was 0.235 billion yuan, up 52.07% year on year and 83.94% month on month. The company's sales revenue for the second quarter of 2024 reached a record high in a single quarter. As positive factors in the global consumer electronics market continue to emerge, the company's active sales strategy and internal potential exploration measures continue to gain strength, new products continue to be launched and sales volume continue to expand, new markets continue to be developed, and the company's operations will continue to maintain positive growth. The company expects further year-on-year revenue growth for the third quarter of 2024 and the full year of 2024.

The 8K product performed well, and the product layout was further expanded. In the first half of 2024, 6nm commercial chip streaming based on the next-generation ARM V9 architecture and self-developed edge AI capabilities was successful, and the first batch of commercial orders have been received. At the same time, the company's 8K chip performed well in the domestic operator's first commercial batch tender.

In 2024, the company will further launch a new three-mode combination product (Wi-Fi 6+BT 5.4.+802.15.4), which supports Thread/Zigbee and can be used in terminal products such as Matter controllers and IoT gateways. As the company continues to launch new products, the company's W-series chip business layout will be further expanded, including but not limited to adapting and supporting sales with the company's main SoC platform, as well as independent sales to the open market.

Profit forecasts and investment recommendations. We expect the company's corresponding EPS for 24-26 to be 1.93/2.48/3.24 yuan/share, respectively. Considering the valuation level of comparable companies, a 24-year PE valuation range of 40-45 times, corresponding to a reasonable value range of 77.20-86.85 yuan, was given a “superior to the market” rating.

Risk warning. Product market promotion fell short of expectations, new business expansion fell short of expectations, and market competition intensified.