WINGTECH(SH:600745) Guotou Securities·2024-10-27 12:23Investment Rating - The investment rating for the company is "Buy - A" with a target price of 40.50 CNY, maintaining the rating [4][7]. Core Views - The company's semiconductor business is showing steady recovery, and the product integration business has turned profitable, indicating a positive outlook for growth [1][2][3]. - The company achieved a revenue of 53.16 billion CNY in the first three quarters of 2024, a year-on-year increase of 19.70%, while the net profit attributable to shareholders was 415 million CNY, down 80.26% year-on-year [1]. - In Q3 2024, the company reported a revenue of 19.57 billion CNY, a year-on-year increase of 28.71% and a quarter-on-quarter increase of 12.85%, with a net profit of 274 million CNY, marking a return to profitability [1][2]. Summary by Sections Semiconductor Business - The semiconductor business generated a revenue of 3.83 billion CNY in Q3 2024, with a quarter-on-quarter growth of 5.86%. The gross margin for this segment was 40.5%, reflecting a year-on-year increase of 2.8 percentage points [2]. - The company is investing 200 million USD in R&D for next-generation WBG products and expanding production capacity for Si diodes and transistors [2]. Product Integration Business - The product integration business achieved a revenue of 15.73 billion CNY in Q3 2024, a year-on-year increase of 45.58% and a quarter-on-quarter increase of 14.79%, with a gross margin of 3.8% [3]. - The improvement in profitability is attributed to capturing new opportunities, optimizing supplier and customer cooperation terms, and enhancing internal cost control [3]. Financial Projections - Revenue growth rates are projected at 18.4%, 8.4%, and 9.9% for 2024, 2025, and 2026 respectively, while net profit growth rates are expected to be -4.8%, 145.1%, and 23.6% for the same periods [4][8]. - The company is expected to benefit from the recovery in the consumer electronics sector and the development of the smart automotive industry, leading to a positive outlook for its various business segments [7].