Dingtong(SH:688668) Minsheng Securities·2024-10-23 02:01Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company's Q3 performance exceeded expectations, with total revenue reaching 703 million yuan, a year-on-year increase of 43.24%, and a net profit attributable to shareholders of 78 million yuan, up 47.72% year-on-year [1]. - In Q3 2024, the company achieved revenue of 251 million yuan, a year-on-year increase of 58.15%, and a net profit of 29 million yuan, reflecting a significant year-on-year growth of 262.57% [1]. - The gross profit margin improved to 29.88%, compared to 25.15% in Q3 2023 and 27.95% in Q2 2024, attributed to the gradual ramp-up of new products in the telecommunications sector [1]. - The telecommunications connector market is expected to benefit significantly from the development of AI, with the company positioned to capitalize on this trend due to its involvement in the supply chain for AI server procurement [1]. - The company is expanding its production capacity across multiple locations, including Dongguan and Henan, to meet increasing customer demand, with plans for further international expansion [1]. - The company is projected to achieve high-quality growth from 2024 to 2026, with expected revenues of 1.039 billion yuan, 1.537 billion yuan, and 2.182 billion yuan, and net profits of 102 million yuan, 153 million yuan, and 223 million yuan respectively [1][2]. Financial Summary - For 2024, the company is expected to generate total revenue of 1.039 billion yuan, with a growth rate of 52.19% [4]. - The net profit attributable to shareholders is projected to be 102 million yuan, reflecting a growth rate of 53.31% [4]. - The company’s PE ratios are forecasted to be 61, 40, and 28 for the years 2024, 2025, and 2026 respectively [2][4].