Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [3][4]. Core Insights - The company reported a significant increase in revenue and profit for the first half of 2024, with operating income reaching 2.176 billion yuan, a year-on-year increase of 269%, and net profit attributable to shareholders at 388 million yuan, up 588% year-on-year [3][5]. - The revenue structure for H1 2024 shows that mobile storage, solid-state drives (SSDs), embedded storage, and other products contributed 31%, 43%, 20%, and 6% respectively to total revenue [3][4]. - The company has expanded its product lines to include LPDDR and memory modules, enhancing its market presence in various application fields, including consumer, commercial, industrial, automotive, and enterprise sectors [3][4]. - The company has established strategic partnerships with major storage manufacturers, which has led to a healthy inventory level of 19 billion yuan at the end of 2023 and 34 billion yuan at the end of H1 2024, benefiting from a positive market cycle [4][5]. Financial Summary - The total revenue for 2023 is reported at 1.776 billion yuan, with projections for 2024E at 4.103 billion yuan, 2025E at 5.340 billion yuan, and 2026E at 7.085 billion yuan, indicating strong growth [5][6]. - The net profit for 2024E is projected to be 828 million yuan, with a significant year-on-year growth rate of 3,210.9% [5][6]. - The company’s gross margin is expected to improve from 16.7% in 2023 to 32.0% in 2024E, reflecting operational efficiency [5][6].
德明利：周期上行叠加产品转型，建设全领域存储品牌