Tricolor(603516) 华鑫证券·2024-07-10 23:00Company Overview - The company has a total market capitalization of 6.6 billion yuan and an average daily trading volume of 232.97 million yuan [8] - The current stock price is 32.68 yuan, with a 52-week price range of 11.99-42.65 yuan [14] - The company has 202 million shares outstanding [1][64] Investment Rating and Core Views - The report maintains a "Buy" rating for the company, citing strong growth potential in its N business and self-developed chips [9] - The company is expected to achieve net profits of 142 million, 274 million, and 395 million yuan in 2024, 2025, and 2026 respectively, with EPS of 0.70, 1.36, and 1.96 yuan [9] - The current PE ratios are 46x, 24x, and 17x for 2024, 2025, and 2026 respectively [9] Financial Performance and Projections - The company is expected to achieve a significant turnaround in 2024, with net profit growth of 712.6% YoY, followed by 92.6% and 44.3% growth in 2025 and 2026 [60] - Revenue is projected to grow from 499 million yuan in 2023 to 2.429 billion yuan in 2026, with growth rates of 90.6%, 71.6%, and 48.8% in the next three years [60] - ROE is expected to improve significantly from 1.6% in 2023 to 24.1% in 2026 [16] Business Developments - The company has launched three self-developed chips: Hanshuo, Zeus, and Thor, which are expected to enhance its market position and boost performance [20] - The company has achieved a breakthrough in its N business, with Purchase Orders steadily increasing and expected to significantly contribute to future earnings [26][32] - The company has obtained Vendor Code from N company, enabling direct supply and opening up opportunities for new product development [32] Market Position and Competitive Advantages - The company's self-developed chips, particularly Hanshuo, could disrupt the LED display control industry and potentially capture market share from competitors with over 1.8 billion yuan in revenue [20] - The Zeus chip addresses the need for domestic alternatives in professional audio-video processing, reducing procurement costs and enhancing competitiveness [20] - The Thor chip expands the company's presence in various industries, including industrial control, medical devices, and smart home applications [20] Recent Performance - The company expects H1 2024 net profit to reach 37-40.7 million yuan, representing a YoY growth of 460.15%-516.16% [19] - The strong performance is attributed to new product launches, overseas business expansion, and improved operational efficiency [37]