occurrences

The company achieved revenue of 0.848 billion yuan in the first three quarters of 2024, a year-on-year increase of 4.31%; net profit to mother -0.099 billion yuan; and gross profit margin of 49.46%, a year-on-year decrease of 4.11 pcts.

The company achieved revenue of 0.342 billion yuan in 24Q3, up 11.37% month-on-month and 69.76% year-on-year; net profit to mother -0.033 billion; gross profit margin of 51.60%, up 3.31 pcts month-on-month, or 1.58 pcts year-on-year.

Q3 revenue continued to recover, and the signal chain grew significantly

Benefiting from increased demand in market segments such as automobiles, new energy, servers, and optical modules, and the gradual release of new signal chain and power management chip products, the company has achieved two consecutive quarters of growth since Q2 this year. Among them, 24Q3 single-quarter signal chain chip products achieved revenue of 0.29 billion yuan, a year-on-year increase of 73.25%, and a month-on-month increase of 19.25%, achieving two consecutive quarters of month-on-month growth; power management chip products achieved revenue of 49.8419 million yuan, an increase of 51.10% year-on-year.

The company completed the merger and acquisition of Chuangxin Micro to enhance power management capabilities

On the one hand, the growth path of a simulation company is to continuously increase investment in R&D and enhance product coverage; on the other hand, it comes from making up for shortcomings through mergers and acquisitions and continuously enhancing competitive advantage. The company started with signal chain analog chips, and strengthened its power management advantages through mergers and acquisitions of Chuangxin Micro this year. On October 22, 2024, the company completed the asset transfer of 100% of Chuangxinwei's shares, and Chuangxinwei has become a wholly-owned subsidiary of the company. As business integration with Chuangxin Micro progresses steadily, it continues to cultivate applications in core markets such as communications, industry, new energy, automotive electronics, and consumer electronics. It is expected that product performance and technical service capabilities will continue to be enhanced, and market competitiveness and influence will be enhanced.

Investment advice

We expect the company's net profit to be -0.023, 0.108, and 0.296 billion yuan respectively in 2024-2026, with corresponding EPS being -0.17, 0.82, and 2.23 yuan respectively. The latest closing price corresponding to PE is/, 140x, and 51x, respectively, maintaining the “gain” rating.

Risk warning

The recovery of the industry fell short of expectations, and the development of new products fell short of expectations.