Downstream is picking up, and the company's marginal revenue growth rate is quite impressive. The company achieved revenue of 0.594 billion yuan in the first half of 2024, +4.91% year over year; realized net profit of 0.055 billion yuan, +11.70% year over year; realized net profit of 0.053 billion yuan without return to mother, +27.13% year over year. Looking at Q2 alone, the company achieved revenue of 0.338 billion yuan, +25.46% YoY, +32.13% month-on-month, and net profit to mother 0.028 billion yuan, +51.90% YoY, +8.31%.

By product, it is mainly due to the gradual recovery in demand in the consumer electronics industry and the increase in demand for laser cleaning. Sales of the company's laser products increased by 10.99% over the same period last year, achieving revenue of 0.332 billion yuan, laser/optical intelligent equipment achieved revenue of 0.217 billion yuan, and revenue of optical fiber devices about 6 million yuan.

The company continues to reduce costs and increase efficiency, and increase profitability. In the first half of 2024, the company achieved gross profit margin of 40.43%, +2.47pct year on year; net profit margin 9.23%, +0.56pct year on year; net profit margin of 8.86% without return to mother, +1.55pct year on year.

The new product layout continues to advance: at present, the company's products continue to receive customer orders in terms of resistors and integrated inductors, and the testing and verification of capacitive test sorters is progressing rapidly during the year; after entering the mobile camera module testing supply chain for leading consumer electronics customers in 2023, as customers continue to advance in domestic production capacity construction, the company's camera module testing orders have grown rapidly, and continuous delivery of equipment for multiple camera core functions; flexible circuit board laser microhole processing equipment has been successfully verified by leading domestic circuit board manufacturers, and it is expected that this model will gradually be promoted. Domestic replacement of equipment.

Profit forecast and investment advice: The company's inventory balance at the end of June increased by 25.33% compared to the beginning of the year. The consumer electronics industry's peak season is generally in the second half of the year. We judge that the company's equipment business is expected to achieve high growth in the second half of the year. We expect revenue of 14.65/17.39 and 2,038 billion yuan for 24-26, and net profit of 0.143/0.205/0.247 billion yuan, with year-on-year growth rates of 32.82%, 43.47% and 20.47%, maintaining the “recommended” rating. .

Risk warning: Downstream expansion of newly laid out products falls short of expected risks, competition increases risks, product acceptance progress falls short of expected risks, etc.