维持增持评级 ，维持目标价 16.75 元。我们维持公司 2024-2026 年EPS 分别预测为0.67/0.99/1.31 元，维持目标价 16.75 元，对应2024年25x PE，增持评级。Introduction to this report:
The company announced the 24H1 results. 24Q2 revenue in various fields reached a record high. In the future, with the development of folding machines, AI servers, etc., the company is expected to maintain rapid growth.
Key points of investment:
Maintain an increase in holdings rating and maintain the target price of $16.75. We maintained the company's 2024-2026 EPS forecast at 0.67/0.99/1.31 yuan, and maintained a target price of 16.75 yuan, corresponding to 25x PE in 2024, with an increase in holdings rating.
The results were in line with expectations, and net profit after deduction was close to the upper end of the forecast. Revenue for the first half of the year was 2.353 billion yuan, +33.50% YoY, net profit 0.19 billion yuan, +431.53% YoY, net profit after deducting 0.178 billion yuan, +6821.68% YoY, close to the top of the previous performance forecast; by sector, P&S revenue was 1.11 billion yuan, or +26.69% YoY, of which Q2 achieved 0.579 billion yuan in a single quarter, a record high; SMC revenue 0.456 billion yuan, -6.52% YoY; Q2 achieved revenue of 0.276 billion yuan in a single quarter, a record high; MIM sector revenue was 0.767 billion yuan, +101.11% YoY. The gross margins of the three major sectors were 25.56%, 21.77%, and 24.30% respectively, with year-on-year increases of varying degrees, +6.08pcts, +10.88pcts, and +2.49pcts respectively. The increase in performance was mainly due to (1) P&S maintained steady growth driven by demand for automobiles and home appliances (2) MIM grew rapidly, and revenue began to rise along with the growth of the folding machine market (3) SMC's downstream fields such as server power supplies and chip inductors maintained rapid growth.
The MIM hinge is gradually being realized, and the emerging sector continues to grow rapidly. With the launch of new products from major customers, 24H1's MIM business revenue increased 101.11% year-on-year. Currently, it has 5 folding machine hinge module production lines, which will continue to benefit from the development of the folding machine market and the volume of products from major customers. In addition, the company lays out titanium alloy powder through shareholding to further improve the industrial chain in the fields of 3D printing and titanium powder molding. In the server and other fields, the company's server power supply and chip inductor soft magnetic material product 24H1 achieved revenue of 52.29 million yuan. At the same time, the company has successfully developed high-speed connector covers for servers. Currently, one material model has been supplied in batches and indirectly equipped with Nvidia GB200NVL72 servers. The other material model has now been verified domestically, and samples have been submitted abroad for final verification. Driven by emerging markets such as folding machines and AI computing power, the company's growth momentum is sufficient.
Catalyst: The penetration rate of folding screens continues to increase; the company's new product number verification passed.
Risk warning: Production capacity release falls short of expectations; market competition intensifies.
