FMSH(688385)2024-10-07 23:37Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company is advancing its FPGA technology to 1xnm FinFET and has introduced products with millions to billions of gates, supported by proprietary EDA tools. The product range has been widely applied in various sectors including network communication and industrial control [5] - The company has completed the development of 55nm and 90nm embedded flash memory platforms for its MCU products, aiming to expand into key industries such as smart appliances and automotive electronics [6] - The company is expected to see growth in earnings per share (EPS) from 1.01 in 2024 to 1.54 in 2026, with a projected price-to-sales (PS) valuation range of 43.31 to 48.72 yuan, justifying the "Outperform the Market" rating [6][7] Financial Summary - The company's revenue for 2023 is projected at 3,536 million yuan, with a slight decrease from 2022, but expected to grow to 4,989 million yuan by 2026, reflecting a compound annual growth rate [7][9] - Net profit is forecasted to decline to 719 million yuan in 2023 but is expected to recover to 1,259 million yuan by 2026, indicating a strong recovery trajectory [7][9] - The gross margin is expected to stabilize around 59.7% to 59.8% from 2024 to 2026, while the return on equity is projected to improve from 13.6% in 2023 to 14.9% in 2026 [7][9] Product Development - The company is actively expanding its product matrix, particularly in the FPGA and MCU segments, with new products being developed and tested for various applications [5][6] - The introduction of new generation PSoC products and the enhancement of existing product lines are part of the company's strategy to maintain competitiveness in the market [5][6]