Revenue for the first three quarters of 24 years was +53.7% YoY, after deducting non-net profit +86.3% YoY, in line with expectations.

Revenue for the first three quarters of 24 years was 0.433 billion yuan, +53.7% YoY, net profit 0.184 billion yuan YoY, +48.2%, net profit 0.156 billion yuan, +86.3% YoY; gross profit margin 52.94%, YoY -0.41pct, net profit 42.47%, YoY -1.57pct, net profit margin 35.94%, YoY +6.29pct.

24Q3 single-quarter revenue of 0.151 billion yuan, -9.4% month-on-month, net profit of 0.062 billion yuan, -13.5% month-on-month, net profit 0.052 billion yuan, -16.0% month-on-month; gross profit margin 52.49%, +0.25pct month-on-month, net profit margin 41.06%, -1.96pct month-on-month, net profit margin 34.26%, month-on-month. Among them, the month-on-month decline in non-net interest rate deducted in the 24q3 quarter was mainly due to the company's R&D expense ratio of +3.98 pct month-on-month in the Q3 quarter.

Under the trend of increased BLDC penetration rate+domestic substitution, BLDC motor main control MCU/ASIC is expected to benefit.

1) The largest business is the motor control chip MCU. Its 24H1 revenue was 0.174 billion yuan, accounting for about 61.8% of total revenue and 55.23% gross profit margin. 2) The second largest business is motor control chip ASIC. Its 24H1 revenue was 0.043 billion yuan, accounting for about 15.1% of total revenue and 59.78% gross profit margin. 3) The third largest business is the motor driver chip HVIC. Its 24H1 revenue was 0.042 billion yuan, accounting for about 15.0% of total revenue and 42.23% gross profit margin.

Considering that the company has accumulated technology in the BLDC motor drive control field and has the three core advantages of chip technology, motor drive architecture, and motor technology, Q3 performance is expected to benefit from growth as BLDC penetration rate continues to increase in various downstream application fields and the trend of domestic substitution.

R&D investment in the first three quarters was +25.1% year-on-year, and the forward-looking layout helped fields such as industrial control and automotive-grade chips.

24H1 continued to expand in emerging application fields such as white goods, industry, and automobiles, with revenue +86.3% year-on-year; due to the rapid growth rate of emerging fields, 24H1's revenue share in existing traditional fields such as small smart appliances, power tools, and sports travel fell to 63.3%. The company continues to increase R&D investment and forward-looking layout in fields such as automotive electronics and industrial control. The total R&D investment in the first three quarters of 24 was 0.065 billion yuan, +25.1% over the same period. It is expected to benefit from emerging fields such as industrial control and automotive-grade chips to drive performance growth in the future.

The leading domestic motor drive control chip maintains an “gain” rating.

As the leading domestic BLDC motor drive control chip, the company collaborates with the three major technologies of chip+algorithm+motor to build the company's core competitiveness. Grand View Research predicts that the global BLDC motor market will reach 20.991 billion US dollars in 2024, and the CAGR is expected to be 6.8% in 2025-2030. As BLDC demand grows, there is plenty of room for the company to grow in the future. The company's net profit for 2024-2026 is expected to be 0.244/0.31/0.38 billion yuan, respectively, corresponding to the 24/25/26 PE 51/40/33 times, maintaining the “gain” rating.

Risk warning: R&D risk; supplier concentration risk; product quality risk; gross margin fluctuation risk, etc.