MONTNETS TECHNOLOGY(002123) Tianfeng Securities·2024-10-24 01:00Investment Rating - The investment rating for the company is "Accumulate" with a target price of 10.04 CNY [5] Core Views - The company reported a significant increase in net profit for the third quarter of 2024, with a year-on-year growth of 160.47%, driven by the expansion of its international business and the growth of its 5G messaging services [1][2] - The gross profit margin improved, with a gross margin of 10.33% in Q3 2024, an increase of 3.43 percentage points year-on-year [2] - The company has established a strong international communication network, covering over 220 countries and regions, which enhances its competitive advantage [4] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 3.305 billion CNY, a slight decrease of 0.76% year-on-year, while the net profit attributable to the parent company was 30.44 million CNY, a substantial increase of 491.98% [1] - The revenue for Q3 2024 was 977 million CNY, reflecting a year-on-year growth of 1.16% [1] - The company expects net profits for 2024 to be 139.99 million CNY, with projections of 245.24 million CNY and 381.74 million CNY for 2025 and 2026, respectively [4] Business Development Insights - The company has seen a notable recovery in the national SMS business, with a gradual increase in message volume growth from earlier declines [3] - The collaboration with Huawei to launch the 5G messaging product is expected to enhance the company's service offerings and market reach [4] - The company is leveraging its strong R&D capabilities to adapt to customer needs and expand its market presence in both domestic and international markets [4]