Stalway issued a voluntary disclosure announcement for the first three quarters of 2024: It is expected to achieve operating income of 4100 million yuan to 4,300 million yuan in the first three quarters of 2024. Compared with the same period last year, it will increase by 2327.13 million yuan to 2527.13 million yuan, an increase of 131% to 143%. Net profit attributable to parent company owners is expected to reach 252.33 million yuan to 292.33 million yuan in the first three quarters of 2024. Compared with the loss of 65.47 million yuan in the same period last year, it will increase 317.81 million yuan to 357.81 million yuan.

Key points of investment

The revenue scale increased dramatically in the first three quarters, and profitability improved markedly in the first three quarters of 2023. The company's profit was in a state of loss. In the first three quarters of 2024, the company's profit turned loss into profit, and net profit to mother reached 252.33 million yuan to 292.33 million yuan, an increase of 317.81 million yuan to 357.81 million yuan; net profit after deducting non-return to mother reached 282.08 million yuan to 322.08 million yuan, an increase of 342.01 million yuan to 382.01 million yuan over the previous year. Excluding the impact of share payment fees, net profit after deduction was 364.48 million yuan to 404.48 million yuan, an increase of 418.89 million yuan to 458.89 million yuan over the previous year. Thanks to a significant increase in the company's revenue scale, profitability was effectively improved, and net profit increased significantly.

“Smart security+smartphone+automotive electronics” trifecta, 50MP shipments rose sharply

In the first three quarters, the company's newly launched iterative products in the smart security field had better performance and competitiveness, and sales revenue increased significantly; in the smartphone field, the company's shipments of several high-end 50 million pixel products used in flagship mobile phone main cameras, wide-angle, telephoto and front cameras increased dramatically. At the same time, cooperation between the company and customers deepened comprehensively, and products met more application needs. Market share continued to increase, driving the company's revenue in the smartphone sector to grow significantly, successfully opening up a second growth curve.

The comprehensive layout of the series covers the needs of high school and low levels

Through the comprehensive layout of the FSI-RS series, BSI-RS series, and GS series, it is technology-driven to meet the rigid requirements of industry applications such as excellent imaging in low illumination environments, maintaining high chip performance in high temperature working environments, showing bright and dark details in environments with strong light contrast, shooting fast moving objects without distortion/trailing, and high frame rate video shooting. It has the core advantages of competing with leading CMOS image sensor manufacturers, covering all levels of high, medium, and low end products.

Profit forecasting

The company's revenue for 2024-2026 is 6.006, 7.817, 9.692 billion yuan, and EPS is 0.93, 1.55, and 2.32 yuan, respectively. The current stock price is 69, 41, and 28 times PE, respectively. As the semiconductor market recovers and the company's competitiveness increases, the company will benefit from a continuous increase in revenue and profit and maintain a “buy” investment rating.

Risk warning

Macroeconomic risks, risk of product shipments falling short of expectations, risk of increased industry competition, risk of downstream demand falling short of expectations.