2024Q3's performance increased year-on-year, maintaining a “buy” rating

The company released its three-quarter report for 2024. In the first three quarters of 2024, the company achieved revenue of 2.445 billion yuan, +29.96%; net profit to mother of 0.285 billion yuan, +100.57% year over year; net profit after deduction of 0.249 billion yuan, +165.77% year on year; gross sales margin of 52.17%, +1.63 pcts year on year; net sales margin of 11.34%, year on year +4.10pcts year on year. 2024Q3 achieved revenue of 0.868 billion yuan, +18.52% YoY, +2.48% month-on-month; net profit to mother 0.106 billion yuan, +102.74% YoY, -14.50% month-on-month; net profit net profit of 0.09 billion yuan, +102.65% YoY, -15.96% month-on-month; gross sales margin of 51.88%, +2.87pcts YoY, -0.32pcts; net sales margin 12.01%, YoY +5.13pcts, -2.33pcts month-on-month. The main reasons for the year-on-year increase in profit in the first three quarters of 2024 are: (1) the integrated circuit market picked up and sales volume increased; (2) the company actively responded to various changes, continued to deepen cooperation with customers, continued to increase investment in industrial and automotive electronics fields, and actively explore new markets and customers. We maintain the company's profit forecast. We expect net profit to be 0.335/0.77/1.179 billion yuan in 2024-2026, and the PE corresponding to the current stock price is 134.1/58.3/38.1 times. We are optimistic that the company simulates the long-term development of platform-based companies and maintains a “buy” rating.

The company continues to increase its R&D efforts, and various R&D projects are progressing smoothly. The future growth momentum is sufficient. In 2024Q3, the company's R&D expenses reached 0.231 billion yuan, +14.87% YoY, +10.27% month-on-month, and the R&D expenses rate reached 26.62%. During the reporting period, the company's R&D projects progressed smoothly, and new products with completely independent intellectual property rights continued to be launched, including dual-channel 2A flash LED drivers, high-side current detection operational amplifiers with a common mode input voltage range of 24V to 105V, and 6A high-efficiency synchronous step-down power conversion chips. With the gradual launch of new projects and products, the company has plenty of momentum for future growth.

The company implements an incentive mechanism to stabilize the company's equity structure

On August 29, 2024, the board of directors decided to grant reserved stock options to incentive recipients. This move can enhance the company's incentives, stabilize the company's share structure, and release positive market signals, demonstrating the company's determination and confidence in long-term development.

Risk warning: macroeconomic fluctuations; downstream demand falls short of expectations; capacity release falls short of expectations; customer imports fall short of expectations.