ASR(688220) 德邦证券·2024-09-03 08:00Investment Rating - The report maintains a "Buy" rating for the company Aojie Technology (688220.SH) as of September 3, 2024 [1]. Core Views - The company achieved significant revenue growth in the first half of 2024, with approximately CNY 1.655 billion in revenue, representing a year-on-year increase of about 56.62%. The net profit attributable to the parent company was approximately -CNY 265 million, a reduction in losses by about 21.21% [2][3]. - The company is focusing on the development of its cellular baseband and non-cellular IoT chip sectors, with sales of cellular baseband main chips and non-cellular IoT chips increasing by over 80% and 70% year-on-year, respectively [3]. - Aojie Technology's first smartphone chip, ASR8601, has debuted in the Latin American market, marking a significant step in the company's globalization strategy [4]. Summary by Sections Financial Performance - In 2024H1, the company reported a revenue of approximately CNY 1.655 billion, a 56.62% increase year-on-year. The gross profit margin for 2024H1 was 24.27%, a decrease of 0.35 percentage points year-on-year, while the net profit margin was -15.99%, an improvement of 15.8 percentage points year-on-year [3][5]. - For 2024Q2, the company achieved revenue of CNY 825 million, a year-on-year increase of 27.21%, with a slight quarter-on-quarter decrease of 0.61% [3]. Growth Drivers - The company is expected to benefit from the mass production of its 5G Redcap chip in the second half of 2024, having completed laboratory interoperability and certification tests with major equipment manufacturers [3]. - The company maintains substantial R&D investments, which are crucial for its growth in a high-tech industry characterized by significant barriers to entry [3][4]. Future Projections - The report forecasts revenues of CNY 3.315 billion, CNY 4.433 billion, and CNY 6.277 billion for 2024, 2025, and 2026, respectively. The net profit attributable to the parent company is projected to be -CNY 498 million in 2024, improving to a profit of CNY 247 million by 2026 [4][6].