Grain Securities research reports on November 12th: Jihe Integrated (688249.SH) with full capacity helping Q3 performance, significant increase in product gross margin. The company's gross margin reached 25.56% in the first three quarters, a year-on-year increase of 6.6 percentage points, with the gross margin reaching 26.79% in the third quarter, an increase of 2.93 percentage points from the previous quarter, demonstrating a significant improvement in profitability. The expanded capacity has been gradually released since August this year, and will continue to expand in the fourth quarter, focusing mainly on the mid-to-high-end CIS field. At the same time, the adjustment in outsourcing prices for some products in the second quarter is also beneficial for increasing the company's revenue and gross margin levels. It is worth mentioning that recently, the company jointly launched the industry's first 0.18 billion pixel full-frame CIS with Sotbe, which has successfully started trial production. With full capacity utilization, the company actively expands production layout for mid-to-high-end CIS products, and the income and profits are expected to continue to grow. The initial coverage provides a "buy" investment rating.