MICROGATE(SZ:300319) Huajin Securities·2024-09-26 22:39Investment Rating - The report assigns an "Accumulate-A" rating to the company, with a target price of 8.92 CNY as of September 26, 2024 [1][2][5]. Core Views - The company is expected to achieve revenue growth from 2024 to 2026, with projected revenues of 3.25 billion CNY, 3.61 billion CNY, and 4.05 billion CNY respectively, alongside net profits of 320 million CNY, 394 million CNY, and 442 million CNY [2][5]. - The company is focusing on expanding its overseas customer base and has a strong order backlog for integrated power inductors, indicating a promising market outlook [1][3]. - The report highlights the company's efforts in transforming its business model, particularly in the LCM liquid crystal display module segment, which is expected to maintain stable revenue despite no growth forecast [3][4]. Financial Performance and Projections - In 2023, the company reported sales revenue of 3.02 billion CNY, a decrease of 4.28% year-on-year, with electronic components contributing 1.56 billion CNY (51.62%) and LCM modules contributing 1.45 billion CNY (48.12%) [1][4]. - The projected growth rates for electronic components are 15% in 2024, 20% in 2025, and 20% in 2026, with corresponding gross margins of 24.8%, 25%, and 25% [3][4]. - The LCM segment is expected to remain flat with no growth, maintaining a gross margin of 13.5% over the forecast period [3][4]. Market Position and Competitive Landscape - The company is positioned well within the passive electronic components industry, with a focus on power inductors and RF components, which are critical in various applications including mobile communications and automotive electronics [1][3]. - The report notes that the company has established strong relationships with leading clients in the consumer electronics sector and is expanding into automotive and new energy markets [1][3]. - Compared to peer companies, the company's projected P/E ratios for 2024, 2025, and 2026 are 24.2, 19.7, and 17.5 respectively, which are slightly below the average of comparable companies [5][6].