SG Micro Corp(SZ:300661) CAITONG SECURITIES·2024-10-27 10:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 2.445 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 29.96%. The net profit attributable to shareholders reached 285 million yuan, up 100.57% year-on-year [2][3] - In Q3 2024, the company achieved a revenue of 868 million yuan, which is an 18.52% increase year-on-year and a 2.48% increase quarter-on-quarter. The net profit for the same quarter was 106 million yuan, reflecting a year-on-year increase of 102.74% but a quarter-on-quarter decrease of 14.50% [2][3] - The company maintained a gross margin of 51.88% in Q3 2024, which is a year-on-year increase of 2.87 percentage points, while the net margin was 12.01%, up 5.13 percentage points year-on-year [2][3] - The operating cash flow turned positive in Q3 2024, with a net cash flow from operating activities of 90 million yuan [2][3] - The company continues to invest in R&D, with R&D expenses in Q3 2024 amounting to 231 million yuan, marking a year-on-year increase of 14.87% and a quarter-on-quarter increase of 10.27% [2][3] Financial Forecasts - The company is expected to generate revenues of 3.194 billion yuan, 4.010 billion yuan, and 4.855 billion yuan for the years 2024, 2025, and 2026, respectively. The net profits for the same years are projected to be 358 million yuan, 640 million yuan, and 875 million yuan, respectively [3][4] - The corresponding PE ratios for 2024, 2025, and 2026 are expected to be 125.56, 70.13, and 51.36 times, respectively [3][4]