Espressif Systems(688018) 开源证券·2024-07-30 23:00Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company achieved a significant year-on-year revenue growth of 37.96% in H1 2024, reaching 920 million yuan, with a net profit of 152 million yuan, up 134.85% [4] - The expansion of the product matrix is expected to continue driving revenue growth, leading to an upward revision of profit forecasts for 2024, 2025, and 2026 [4] - The company benefits from the increasing penetration of smart home and consumer electronics industries, alongside a continuous expansion of its product lines [5][6] Financial Performance Summary - In H1 2024, the company reported revenue of 920 million yuan, a 37.96% increase year-on-year, and a net profit of 152 million yuan, a 134.85% increase year-on-year [4] - The gross margin improved to 43.20%, up 2.35 percentage points year-on-year [4] - For Q2 2024, revenue reached 533 million yuan, a 52.78% increase year-on-year, with a net profit of 98 million yuan, up 191.87% year-on-year [4] - The company’s EPS for 2024, 2025, and 2026 is projected to be 3.01, 4.07, and 5.43 yuan respectively, with corresponding P/E ratios of 35.2, 26.0, and 19.5 [4] Product Performance - In H1 2024, chip revenue was 381 million yuan (41.40% of total revenue), a 72% increase year-on-year, with a gross margin of 49.00% [5] - Module revenue was 532 million yuan (57.80% of total revenue), a 22% increase year-on-year, with a gross margin of 38.91% [5] - The company’s overall gross margin increased due to low raw material prices and a higher proportion of revenue from new customers with better margins [5] Market Outlook - The global smart home market is expected to reach 154.4 billion USD in 2024, with a projected CAGR of 11% over the next five years [6] - The introduction of new products, such as the dual-core RISC-V SoC ESP32-P4, is anticipated to expand the market capacity by 2.5 times [6]