Focus Lightings Tech CO.(300708)2024-10-16 10:00Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance relative to the market benchmark [3]. Core Insights - The company achieved a record high performance in Q3 2024, with total revenue reaching 2.022 billion yuan, a year-on-year increase of 10.61%. The net profit attributable to shareholders was 151 million yuan, reflecting a significant growth of 2408.97% year-on-year [1][2]. - The gross margin for Q3 2024 was 13.14%, an increase of 3.46 percentage points compared to the previous year, driven by improved product performance and operational efficiency [2]. - The company is actively expanding its production capacity, with ongoing projects funded by 276 million yuan raised, focusing on high-end products such as Mini/Micro LED chips [2][3]. Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 2.022 billion yuan, a 10.61% increase year-on-year, and a net profit of 160 million yuan, up 107.02% year-on-year [2]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.29 yuan, 0.33 yuan, and 0.41 yuan respectively, indicating a positive growth trajectory [3][6]. - The company’s cash flow from operating activities was 503 million yuan, a 59.20% increase compared to the same period in 2023 [2]. Market and Product Insights - The Mini/Micro LED market is expected to see significant growth, with a projected compound annual growth rate (CAGR) of 84% from 2023 to 2028, reaching a market value of 580 million USD by 2028 [2]. - The company is focusing on high-end applications in various sectors, including automotive and virtual reality, which are expected to drive demand for its products [2].