Amlogic(688099) 国泰君安·2024-10-16 09:08Investment Rating - The report maintains a "Buy" rating for the company with a target price of 87.3 yuan [4][6]. Core Views - The company's Q3 performance is largely in line with expectations, considering foreign exchange losses. The introduction of Wi-Fi 6 and 6nm new products is driving continued growth [3][4]. - The company achieved a Q3 revenue of 1.624 billion yuan, a year-on-year increase of 7.7% and a quarter-on-quarter decrease of 0.8%, marking a historical high for the third quarter. The net profit attributable to shareholders reached 231 million yuan, up 79.1% year-on-year [4][5]. - The T-series products have seen over 50% year-on-year growth in the first three quarters, continuing the growth trend in Q3, making it the company's largest product line [4]. Financial Summary - The company reported a revenue of 5,371 million yuan in 2023, with a projected increase to 6,944 million yuan in 2024, representing a growth of 29.3% [5][13]. - The net profit attributable to shareholders is expected to rise from 498 million yuan in 2023 to 812 million yuan in 2024, reflecting a growth of 62.9% [5][13]. - The earnings per share (EPS) are projected to be 1.94 yuan in 2024, increasing to 3.22 yuan by 2026 [5][13]. Product and Market Insights - The Wi-Fi 6 chips are gaining significant market share in domestic operator tenders, with expected sales to exceed 10 million units in 2024 [4]. - The 6nm chips, based on the new ARM V9 architecture, show substantial improvements in CPU and GPU performance while reducing power consumption by 50% [4]. - The company has successfully secured all shares in the first commercial batch tender for 8K chips among domestic operators [4].