TKD(603738) 长城证券·2024-09-05 09:11Investment Rating - The report maintains a "Buy" rating for the company, expecting a stock price increase of over 15% relative to the industry index within the next six months [10]. Core Views - The company achieved a steady growth in net profit in H1 2024, with a year-on-year increase of 21.88%, driven by technological innovation and product diversification [2][3]. - The gross margin for H1 2024 was 25.22%, up by 1.03 percentage points year-on-year, indicating an improvement in profitability [2]. - The company has successfully developed over 1,000 product models, including high-precision TCXO and OCXO series, which are essential for automotive applications [3]. - The global market for new energy vehicles is projected to grow significantly, providing a substantial opportunity for the company's automotive business [2][3]. Financial Summary - In H1 2024, the company reported revenue of 393 million yuan, a year-on-year increase of 1.98%, and a net profit of 57 million yuan, reflecting a growth of 21.88% [1][2]. - The company's revenue is expected to grow from 875 million yuan in 2024E to 1,300 million yuan in 2026E, with a compound annual growth rate (CAGR) of approximately 20.7% [1][6]. - The projected net profit for 2024E is 125 million yuan, increasing to 220 million yuan by 2026E [1][6]. Product Development and Market Position - The company has enhanced its R&D capabilities, focusing on high-end products and optimizing production processes to meet the growing demand in the automotive sector [2][3]. - The automotive electronics market is expanding due to trends in vehicle intelligence, electrification, and connectivity, which increases the demand for high-grade crystal oscillators [3]. - The company has established partnerships with several major automotive manufacturers and Tier 1 suppliers, positioning itself well in the market [3].