DING LONG(SZ:300054) Ping An Securities·2024-10-27 05:11Investment Rating - The report maintains a "Recommended" rating for the company [2][6] Core Views - The company's semiconductor business continues to grow, significantly enhancing its profitability, with a revenue of 2.426 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 29.54%, and a net profit of 376 million yuan, up 113.51% year-on-year [2][4] - The semiconductor business now accounts for 45% of total revenue, up from 32% in 2023, indicating a strong upward trend in this segment [4][5] - The company is focusing on semiconductor innovation materials, particularly CMP process materials and advanced packaging materials, positioning itself as a platform company for imported substitute semiconductor materials [6][5] Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 907 million yuan, a 27% increase year-on-year and a 12% increase quarter-on-quarter, with a gross margin of 48.57% [4][5] - The net profit for Q3 was 158 million yuan, reflecting a 97% year-on-year increase and a 16% quarter-on-quarter increase [4] - The company’s R&D investment for the first three quarters was 336 million yuan, a 21% increase year-on-year, accounting for 13.85% of revenue [4][5] Business Segments - The CMP polishing pad business achieved a record revenue of 2.25 billion yuan in Q3, with a year-on-year growth of 90% [5] - The semiconductor materials segment generated 1.4 billion yuan in revenue for the first three quarters, a 190% increase year-on-year [5] - The semiconductor display materials segment reported 2.82 billion yuan in revenue, up 168% year-on-year, with significant market share growth [5] Future Projections - The company forecasts net profits of 524 million yuan, 741 million yuan, and 1.037 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.56 yuan, 0.79 yuan, and 1.11 yuan [6][8] - The projected P/E ratios for the next three years are 49.8X, 35.3X, and 25.2X, indicating a favorable valuation trend [8]