下游需求全面回升，毛利率有望进一步提升。公司下游景气度全面回暖，尤其是在汽车电子、工业、行业类、消费类等市场的AIoT 需求的持续增长，叠加Q3 为双十一、黑五、圣诞等备货的传统旺季，公司24Q3 单季度营收实现了历史最高水平。公司24Q3 单季度毛利率为37.34%，同比+1.26 个pct，环比+0.48 个pct，从23Q4至今已实现连续3 个季度环比回升, 随着后续通过产品结构调整及供应链的支持，公司毛利率有望进一步提升。且由于规模效应的显现，公司净利率提升明显，公司24Q3 单季度净利率达到18.54%，同比+9.82 个pct，环比+2.23 个pct。occurrences
The company released its report for the third quarter of 2024. In the first three quarters of 2024, the company achieved operating income of 2.16 billion yuan, a year-on-year increase of 48.47%; net profit to mother was 0.352 billion yuan, an increase of 354.90% year-on-year. In the Q3 2024 quarter, the company achieved revenue of 0.911 billion yuan, a year-on-year increase of 51.36%, and a month-on-month increase of 29.12%; net profit to mother was 0.169 billion yuan, an increase of 221.68% year-on-year, and 46.75% month-on-month.
Key points of investment
Downstream demand is picking up across the board, and gross margin is expected to increase further. The company's downstream boom is picking up across the board. In particular, demand for AIoT continues to grow in automotive electronics, industry, consumer and other markets. Combined with Q3 being the traditional peak season for stock preparation such as Double Eleven, Black Friday, and Christmas, the company's 24Q3 single quarter revenue reached the highest level in history. The company's gross margin for 24Q3 was 37.34%, +1.26 pct year on year and +0.48 pct month on month. Since 23Q4, it has achieved 3 consecutive quarterly month-on-month recovery. With subsequent product restructuring and supply chain support, the company's gross margin is expected to increase further. Moreover, due to the scale effect, the company's net interest rate increased significantly. The company's net interest rate in the 24Q3 single quarter reached 18.54%, +9.82 pcts year over year and +2.23 pcts month over month.
Furthermore, at the end of 24Q3, the company's contract debt rose to a record high; in Q3, 0.466 billion in cash purchased goods and received labor payments in a single quarter was a new high in 23 years, and we maintain a high level of confidence in the future market.
The company's new products are being sold rapidly, and the market share of multiple lines is expected to increase further. The company's new products, RK3576, RK2118, and RV1103B, have been quickly introduced to leading customers in the target field. Among them, RK3576 has been introduced to leading customers in the target scenario. RK2118 is fully cooperating with leading car companies' on-boarding tests and actively promoting the implementation of cooperative projects with major first-tier audio companies. The second half of the year and next year will gradually form new growth points and continue to release incremental value. Furthermore, under the layout of the “Wild Goose Travel Policy” with the RK3588 series as its flagship, the company has now developed the ability to serve multiple levels of diverse needs, and the market share of the AIoT product line is expected to increase further in the future. In the future, the company is about to launch several new products, and the operating leverage effect is expected to be released. We are optimistic about the company's potential for continued growth in the future.
Investment advice
We expect the company to achieve revenue of 3.219/4.225/5.323 billion yuan in 2024-2026, and realized net profit of 0.537/0.796/1.086 billion yuan respectively. The current stock price corresponding to 2024-2026 PE is 70 times, 47 times, and 35 times, respectively, giving it a “buy” rating.
Risk warning:
Market demand falls short of expectations; new product development and market expansion fall short of expectations; market competition intensifies, etc.
