MONTNETS TECHNOLOGY(002123) 民生证券·2024-10-26 14:00Investment Rating - The report maintains a "Recommended" rating for the company with a current price of 10.79 yuan [1]. Core Insights - The company's Q3 performance is impressive, with a significant increase in net profit driven by international business growth and the expansion of its 5G messaging services. The net profit for the first three quarters of 2024 reached 0.30 billion yuan, a year-on-year increase of 491.98% [2][4]. - The 5G messaging service is gaining traction, with a notable increase in sending volume, which has improved the company's gross margin to 10.33% in Q3 2024, up by 3.43 percentage points year-on-year [2]. - The company is leveraging its 5G messaging capabilities to create a complete loop for notifications, services, and marketing, enhancing its service offerings across various platforms [2][4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a net profit of 0.21 billion yuan, reflecting a 160% year-on-year growth. The total revenue for the first three quarters was 33.05 billion yuan, a slight decline of 0.76% year-on-year [2]. - The forecast for net profit from 2024 to 2026 is projected to be 0.79 billion yuan, 1.40 billion yuan, and 2.40 billion yuan respectively, with corresponding P/E ratios of 109, 62, and 36 times based on the closing price on October 25, 2024 [4][5]. Business Development - The company has completed the technical support platform for the three major telecom operators, achieving 5G messaging coverage for 1.1 billion non-iOS devices. This service combines the reach of traditional SMS with the functionalities of the internet [2][4]. - The "5G Yuanxin" service, based on Huawei's terminal cloud, is expected to have significant business flexibility during the rapid development phase of HarmonyOS, integrating AI capabilities for precise service distribution [2][4]. International Expansion - The company is rapidly developing its international business, providing a comprehensive cloud communication platform that connects Chinese enterprises with global markets. It has established branches in 12 regions and has covered over 220 countries and regions with more than 1,200 operator resources [4].