Hefei Chipmore Technology (688352) Great Wall Securities·2024-10-21 11:10Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [12]. Core Views - The company reported a steady revenue growth of 25.11% year-on-year for the first three quarters of 2024, achieving a total revenue of 1.435 billion yuan [2][3]. - Despite the revenue growth, the net profit for the same period decreased by 6.76% year-on-year, amounting to 228 million yuan [2]. - The company anticipates a recovery in demand for large-size displays in Q4, driven by inventory replenishment needs and increasing AMOLED penetration rates [3][6]. Financial Performance Summary - Revenue for 2022 was 1.317 billion yuan, increasing to 1.629 billion yuan in 2023, with projections of 1.907 billion yuan for 2024 and 2.210 billion yuan for 2025 [2][8]. - The year-on-year growth rates for revenue are projected at 17.0% for 2024, 15.9% for 2025, and 14.0% for 2026 [2]. - The net profit for 2023 was 372 million yuan, with a forecasted decline to 298 million yuan in 2024, followed by increases to 403 million yuan in 2025 and 520 million yuan in 2026 [2][8]. - The company's overall gross margin for Q3 2024 was reported at 30.84%, a decrease of 8.85 percentage points year-on-year [3]. - The net profit margin for Q3 2024 was 13.24%, down 13.54 percentage points year-on-year [3]. Market Position and Outlook - The company holds a leading position in the display driver chip packaging and testing market, ranking third globally [6]. - The penetration rate of AMOLED technology is steadily increasing, with the company reporting that AMOLED revenue accounted for approximately 26% of total revenue in the first nine months of 2024 [3][6]. - The report highlights that the company is expanding its business into non-display chip packaging, with non-display chip packaging revenue accounting for 8% in Q3 2024 [6].