KFMI(SZ:300666) SINOLINK SECURITIES·2024-10-25 03:08Investment Rating - The report maintains a "Buy" rating for Jiangfeng Electronics [3][5]. Core Views - Jiangfeng Electronics reported a significant year-on-year increase in performance for Q3 2024, with revenue reaching 2.625 billion RMB, a growth of 41.77% compared to the same period last year. The net profit attributable to shareholders was 287 million RMB, up 48.51% year-on-year [4]. - The company is actively repurchasing shares, reflecting management's confidence in the long-term development of the business. As of September 10, 2024, the company had repurchased 1,020,200 shares, accounting for 0.3845% of the total share capital, at a cost of 52 million RMB [5]. - The semiconductor component business is experiencing accelerated growth due to domestic material and component validation in response to global export controls, enhancing the localization of the semiconductor supply chain [5]. Summary by Sections Performance Overview - For the first three quarters of 2024, Jiangfeng Electronics achieved a revenue of 2.625 billion RMB, a year-on-year increase of 41.77%. The net profit attributable to shareholders was 287 million RMB, reflecting a growth of 48.51%. The adjusted net profit was 262 million RMB, up 87.32% year-on-year. In Q3 2024 alone, revenue was 998 million RMB, a 52.48% increase year-on-year, and net profit was 126 million RMB, up 213.13% year-on-year [4]. Business Analysis - The semiconductor industry is witnessing a trend of de-globalization, with export control measures from the US, Japan, and the Netherlands. This has led to an acceleration in the domestic semiconductor supply chain, benefiting Jiangfeng Electronics' component business [5]. - The company has increased its R&D investment to 165 million RMB in Q3 2024, a 42.46% increase year-on-year, with an R&D expense ratio of 6.29% [5]. Profit Forecast and Valuation - The report maintains profit forecasts for Jiangfeng Electronics, expecting net profits of 371 million RMB, 485 million RMB, and 632 million RMB for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 45%, 31%, and 30%. The corresponding EPS estimates are 1.40 RMB, 1.83 RMB, and 2.38 RMB, with PE ratios of 50, 38, and 29 times [5].