Yangjie Technology(SZ:300373) SINOLINK SECURITIES·2024-10-23 08:00Investment Rating - The report maintains a "Buy" rating for the company, anticipating a price increase of over 15% in the next 6-12 months [7]. Core Views - The company has shown steady revenue and profit growth in Q3 2024, with a revenue of 4.423 billion RMB, up 9.48% year-on-year, and a net profit of 669 million RMB, up 8.28% year-on-year [2]. - The semiconductor market demand is gradually improving, leading to stable revenue growth for the company, particularly in the automotive electronics sector, which saw a 60% increase in revenue year-on-year [2]. - The company is focusing on cost leadership and product differentiation, with a research and development expense ratio of 6.99%, indicating a commitment to innovation [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 4.423 billion RMB, with Q3 revenue at 1.558 billion RMB, reflecting a 10.06% year-on-year growth [2]. - The gross profit margin for Q3 2024 was 33.59%, an increase of 2.27 percentage points from the previous quarter [2]. - The net profit for Q3 2024 was 244 million RMB, a 17.91% increase year-on-year [2]. Market Analysis - The automotive electronics industry demand remains strong, with the company actively optimizing its product structure and expanding its market presence [2]. - The company is well-positioned to benefit from the ongoing electrification and intelligence transformation in the automotive sector, with significant growth opportunities in the power device market [2]. Profit Forecast and Valuation - The projected net profits for 2024, 2025, and 2026 are 953 million RMB, 1.198 billion RMB, and 1.410 billion RMB, respectively, with corresponding EPS of 1.755 RMB, 2.206 RMB, and 2.597 RMB [2]. - The current stock price corresponds to a PE ratio of 29, 23, and 19 for the years 2024, 2025, and 2026, respectively [2].