Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company experienced rapid growth in H1 2024, achieving revenue of 2.176 billion RMB, a year-on-year increase of 268.50%, and a net profit of 388 million RMB, marking a return to profitability [2]. - The company's gross margin reached 29.00%, up 26.84 percentage points year-on-year, while the net profit margin was 17.81%, an increase of 31.26 percentage points year-on-year [2]. - The report highlights the company's strategic focus on storage technology, which has led to a diversified product matrix and an expanding customer base, contributing to its growth [2]. - The semiconductor market is expected to grow significantly, with the storage market projected to see over 75% growth in 2024, providing favorable conditions for the company [2]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 2.176 billion RMB, a 268.50% increase year-on-year, and a net profit of 388 million RMB, compared to a loss in the previous year [2]. - For Q2 2024, revenue was 1.365 billion RMB, reflecting a 373.12% year-on-year increase and a 68.36% quarter-on-quarter increase [2]. - The company expects revenues of 3.996 billion RMB, 4.409 billion RMB, and 5.655 billion RMB for 2024, 2025, and 2026 respectively, with corresponding net profits of 801 million RMB, 634 million RMB, and 711 million RMB [3]. Market Position and Strategy - The company is capitalizing on the recovery of the storage market, expanding its product offerings to include embedded storage and memory modules, which are becoming new growth points [2]. - The company has successfully entered the supply chains of several well-known enterprises, enhancing its customer diversity and operational stability [2]. - The report emphasizes the importance of AI applications driving demand in the storage market, which is expected to benefit the company significantly [2]. Valuation - The report adjusts the company's earnings forecast upwards, reflecting the anticipated growth in the storage industry and the company's strategic positioning [2]. - The projected P/E ratios for 2024, 2025, and 2026 are 13.0, 16.4, and 14.6 respectively, indicating a favorable valuation outlook [3].
德明利：24H1业绩高速增长，周期机遇助力公司开疆拓土