Jiangsu JieJie Microelectronics (SZ:300623) SINOLINK SECURITIES·2024-10-25 07:09Investment Rating - The report maintains a "Buy" rating for the company [3] Core Insights - The company's Q3 performance shows significant improvement in net profit and revenue, driven by a recovery in demand and increased capacity utilization [3] - The company has raised its profit forecasts for 2024-2026, reflecting a positive outlook for profitability and operational efficiency [3] Summary by Relevant Sections Financial Performance - For the first three quarters of 2024, the company achieved revenue of 2.006 billion yuan, a year-on-year increase of 40.63%, and a net profit attributable to shareholders of 333 million yuan, up 133.37% [3] - In Q3 2024 alone, revenue reached 743 million yuan, growing 41.50% year-on-year, with a net profit of 119 million yuan, an increase of 155.31% [3] Operational Analysis - The revenue growth rate for Q3 2024 remains high at 41.50%, with a slight quarter-on-quarter increase of 0.07% [3] - The company has seen a strong demand for medium and low-voltage power devices in consumer and home appliance sectors, leading to robust order volumes [3] - The gross profit margin improved by 4.09 percentage points to 38.22% compared to the entire year of 2023, with a quarterly increase of 3.72 percentage points in Q3 2024 [3] Strategic Developments - The company announced plans to acquire a 30.24% stake in JieJie Nantong Technology through a combination of share issuance and cash payment, enhancing its IDM (Integrated Device Manufacturer) strategy [3] - The operational performance of the 8-inch wafer production line is expected to improve, reducing reliance on external suppliers and increasing the self-supply rate of MOS chips [3] Profit Forecast and Valuation - The profit forecasts for 2024-2026 have been revised upwards to 449 million, 586 million, and 784 million yuan, respectively, with corresponding EPS estimates of 0.61, 0.80, and 1.07 yuan [3] - The current stock price corresponds to PE valuations of 77, 59, and 44 times for the years 2024, 2025, and 2026, respectively [3]