Wuhan Jingce Electronic (300567) 西南证券·2024-10-27 09:30Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Views - The company has shown significant revenue growth, with a 63.3% year-on-year increase in Q3 2024, leading to a total revenue of 7.1 billion yuan for the quarter [1]. - The semiconductor business is experiencing rapid growth, with a 95.3% increase in revenue year-on-year, while the display business is recovering quickly [1][2]. - The company has a strong order backlog of 3.17 billion yuan, with substantial orders in the semiconductor and display sectors [1]. Summary by Sections Financial Performance - For Q1-Q3 2024, the company achieved a total revenue of 1.83 billion yuan, up 18.5% year-on-year, and a net profit of 82.24 million yuan, compared to a loss of 12.6 million yuan in the same period last year [1]. - The gross margin for Q1-Q3 2024 was 43.4%, a decrease of 1.7 percentage points year-on-year, while the net margin improved by 5.8 percentage points to 2.4% [1]. Business Segments - Revenue from the display, semiconductor, and new energy sectors for Q1-Q3 2024 was 1.27 billion, 410 million, and 120 million yuan, respectively, reflecting year-on-year growth rates of 20.5%, 95.3%, and -51.5% [1]. - The display sector is benefiting from investments in large-size OLED factories and upgrades in production automation, while the semiconductor sector has secured repeat orders for advanced process equipment [1][2]. Research and Development - The company invested 470 million yuan in R&D for Q1-Q3 2024, an increase of 22.96 million yuan year-on-year, indicating a strong commitment to enhancing product competitiveness [2]. - New partnerships in the AR/VR industry and expansion into the semiconductor manufacturing packaging chain are expected to drive future growth [2]. Profit Forecast and Valuation - The projected net profits for 2024, 2025, and 2026 are 240 million, 320 million, and 450 million yuan, respectively, with a compound annual growth rate of 44% [2]. - The current price-to-earnings ratios are 71, 53, and 38 for the next three years, indicating a strong growth outlook [2].