Lion(605358) 长城证券·2024-09-06 11:09Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's profitability improved significantly in Q2 2024, with a 94.13% QoQ increase in net profit attributable to the parent company [1] - The company's revenue in H1 2024 reached 1.459 billion yuan, a YoY increase of 8.69% [1] - The company's gross margin in Q2 2024 was 14.55%, a QoQ increase of 4.67 percentage points [2] Financial Performance - The company's revenue in 2024E is expected to be 2.996 billion yuan, a YoY increase of 11.4% [1] - The company's net profit attributable to the parent company in 2024E is expected to be 197 million yuan, a YoY increase of 200.3% [1] - The company's ROE in 2024E is expected to be 2.1%, up from -0.3% in 2023A [1] Business Segments - The semiconductor silicon wafer business revenue in H1 2024 was 1.022 billion yuan, a YoY increase of 12.96% [2] - The semiconductor power device business revenue in H1 2024 was 448 million yuan, a YoY decrease of 16.62% [2] - The compound semiconductor RF chip business revenue in H1 2024 was 128 million yuan, a YoY increase of 233.89% [2] Capacity Expansion - The company is actively expanding its production capacity, with the Quzhou base expected to complete the installation of 250,000 8-inch wafers per month by September 2024 [3] - The Jiaxing base is expected to reach a capacity of 150,000 12-inch wafers per month by the end of 2024 [3] - The Haining base is expected to complete the construction of a 60,000 6-inch RF chip production line by Q4 2024 [3] Market Outlook - The company's products are widely used in 5G communications, smartphones, computers, automotive, photovoltaic, consumer electronics, low-orbit satellites, smart grids, medical electronics, AI, and IoT [3] - The company is expected to benefit from the recovery in semiconductor market demand and further improve its profitability [3]