Sunlord(SZ:002138) Huaan Securities·2024-10-27 11:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 4.195 billion yuan for the first nine months of 2024, representing a year-on-year growth of 14.13%, and a net profit attributable to shareholders of 624 million yuan, up 30.71% year-on-year [1] - In Q3 2024, the company achieved a revenue of 1.504 billion yuan, a year-on-year increase of 11.86% and a quarter-on-quarter increase of 4.99% [1] - The company is experiencing a recovery trend, successfully navigating the Android inventory cycle, with significant growth in signal processing and automotive electronics or energy storage businesses [1] - The demand for DDR5 power inductors is surging due to the AI era, with the company’s new products making significant progress [1][2] - The company’s HTF-MP series of multi-phase power inductors is designed for complex multi-phase power applications, catering to the needs of ultra-thin, high-power devices [2] Financial Summary - For 2023, the company’s revenue is projected at 5.04 billion yuan, with a year-on-year growth of 18.9%, and a net profit of 641 million yuan, reflecting a 48% increase [3] - The company’s gross margin is expected to improve to 37.4% in 2024, with a projected net profit of 848 million yuan [3][6] - The company’s cash flow from operating activities is expected to increase from 1.144 billion yuan in 2023 to 1.872 billion yuan in 2026 [4] - The projected earnings per share (EPS) are expected to rise from 0.81 yuan in 2023 to 1.57 yuan in 2026 [5][6] Business Outlook - The company is expected to maintain a strong growth trajectory, with net profits projected to reach 8.48 billion yuan in 2024, 10.59 billion yuan in 2025, and 12.68 billion yuan in 2026, corresponding to price-to-earnings (PE) ratios of 27, 22, and 18 respectively [2][3]