HGTECH(SZ:000988) Minsheng Securities·2024-10-27 02:39Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company's Q3 performance exceeded expectations, with total revenue reaching 9.002 billion yuan, a year-on-year increase of 23.42%, and a net profit attributable to shareholders of 938 million yuan, up 15.19% year-on-year [1] - The company's revenue for Q3 2024 was 3.802 billion yuan, representing a year-on-year growth of 67.49% and a quarter-on-quarter increase of 25.47% [1] - The gross margin for Q3 2024 was 17.62%, down from 22.44% in Q2 2024, attributed to structural adjustments in the business mix [1] - The company is rapidly advancing in connection products, particularly in the Net5.5G sector, with significant deliveries of 400G and below optical modules and small batch deliveries of 800G optical modules [1] - The company has successfully launched the latest single-wave 200G self-developed silicon optical chip for 1.6T optical modules and various 1.6T optical module products [1] - The company is actively developing new materials and technologies for next-generation high-speed products, aiming to create leading smart "optical + wireless connection" solutions [1] - The sensing business is steadily progressing, with significant growth in the PTC thermal management systems for electric vehicles and breakthroughs in temperature sensors for automotive applications [1] - The company is optimistic about high-end product volume growth and overseas expansion, projecting net profits of 1.304 billion yuan, 1.572 billion yuan, and 1.890 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 28x, 24x, and 20x [1] Financial Summary - For 2024, the company forecasts total revenue of 13.475 billion yuan, with a growth rate of 32% [4] - The net profit attributable to shareholders is projected to be 1.304 billion yuan, reflecting a growth rate of 29.55% [4] - The company expects a gross margin of 23.12% in 2024, with a net profit margin of 9.68% [4] - The total assets are projected to reach 19.647 billion yuan by 2024, with total liabilities of 9.316 billion yuan [5] - The company anticipates a cash flow from operating activities of 915 million yuan in 2024 [6]