FRD(300602) 华鑫证券·2024-08-22 01:30Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Insights - The company has shown significant improvement in both revenue and profit in Q2 2024, with a revenue of 1.2 billion yuan, representing a year-over-year increase of 18% and a quarter-over-quarter increase of 21%. The net profit for the same period reached 33 million yuan, marking a year-over-year increase of 13% and a quarter-over-quarter increase of 39% [3]. - The company is experiencing growth across multiple sectors, particularly in consumer electronics and server-related businesses, benefiting from an overall recovery in the industry [4]. - The company is focusing on major clients such as Huawei, Sunpower, Meta, Microsoft, and Lenovo, enhancing its core competitiveness in thermal management and electromagnetic shielding products [5]. Summary by Sections Financial Performance - In H1 2024, the company achieved a total revenue of 2.169 billion yuan, a year-over-year increase of 22%, and a net profit of 57 million yuan, reflecting a substantial year-over-year increase of 1307% [2]. - The company's gross margin has recovered to 19% in Q2 2024, with a net margin of 2.6%, both showing significant improvements [3]. Market Position - The global smartphone sales reached 288 million units in Q2 2024, up 12% year-over-year, while the PC market also showed recovery with sales of 62.8 million units, a 3.4% year-over-year increase. The company is gaining market share in the consumer electronics sector [4]. - The company has successfully developed various liquid cooling products and special heat dissipation devices for server applications, with some products already delivered in small batches [4]. Profit Forecast - The company is projected to achieve net profits of 231 million yuan, 349 million yuan, and 456 million yuan for the years 2024, 2025, and 2026, respectively. The earnings per share (EPS) are expected to be 0.40 yuan, 0.60 yuan, and 0.79 yuan for the same years, with corresponding price-to-earnings (PE) ratios of 38, 25, and 19 times [6][9].