LUXSHARE-ICT(002475) 兴业证券·2024-08-29 02:13Investment Rating - The report maintains a "Buy" rating for Luxshare Precision (002475) [1] Core Views - Luxshare Precision achieved robust growth in H1 2024, with revenue of 1036 billion yuan (YoY +5 7%) and net profit of 5 4 billion yuan (YoY +23 9%) [2] - Q2 2024 revenue was 511 9 billion yuan (YoY +6 6%, QoQ -2 3%), with net profit of 29 3 billion yuan (YoY +25 1%, QoQ +18 4%) [2] - The company expects Q3 2024 net profit to grow 20%-25% YoY, with revenue increasing 14 4%-26 6% [2] - AI-driven consumer electronics upgrades and rapid growth in automotive and communication businesses are key drivers [2][4] Business Performance Consumer Electronics - H1 2024 revenue: 855 5 billion yuan (YoY +3 25%) [2] - Benefiting from AI-driven market demand, both new and existing products performed well [2] - Gross margin improved to 10 49% in H1 2024 (QoQ +0 98pct) [2] Automotive Business - H1 2024 revenue: 47 6 billion yuan (YoY +48 30%) [2] - Diversified product portfolio including wiring harnesses, connectors, smart cockpits, and autonomous driving solutions [2] - Leveraging global production bases to serve leading automakers [2] Communication Business - H1 2024 revenue: 74 7 billion yuan (YoY +21 65%) [2] - Strong capabilities in electrical/optical connections, power, cooling, and RF products [2] - Comprehensive solutions for server, switch, and base station applications [2] Financial Metrics Profitability - H1 2024 gross margin: 11 71% (YoY +1 07pct) [2] - Q2 2024 gross margin: 12 69% (YoY +1 42pct, QoQ +1 95pct) [2] - ROE expected to increase from 19 5% in 2023 to 21 2% in 2026 [5] Expense Ratios - H1 2024 sales, management, and R&D expense ratios: 0 42%, 2 49%, 4 07% respectively [3] - Q2 2024 R&D expense ratio: 4 52% (YoY +0 81pct) [3] Future Projections - 2024-2026 revenue forecast: 2505 27, 2781 36, 3101 77 billion yuan (YoY +8 0%, +11 0%, +11 5%) [4] - 2024-2026 net profit forecast: 139 44, 179 51, 224 29 billion yuan (YoY +27 3%, +28 7%, +24 9%) [4] - 2024-2026 EPS forecast: 1 94, 2 49, 3 11 yuan [5] Market Data - Closing price (2024-08-23): 37 89 yuan [3] - Market cap: 7203 32 million shares [3] - Net assets: 59518 28 million yuan [3] - Total assets: 182828 4 million yuan [3] Industry Outlook - AI-driven consumer electronics expected to drive new replacement cycles [4] - Automotive and communication businesses positioned as second and third growth engines [4] - Strong capabilities in core technologies (acoustics, optics, electronics, thermal, magnetic, RF) supporting future growth [4]