Willsemi(SH:603501) ZHONGTAI SECURITIES·2024-10-28 09:12Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company reported a significant increase in revenue and net profit for the first three quarters of 2024, with revenue reaching 18.91 billion yuan, up 25.4% year-on-year, and net profit attributable to shareholders at 2.38 billion yuan, up 544.7% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 6.82 billion yuan, representing a year-on-year increase of 9.6% and a quarter-on-quarter increase of 5.7% [1]. - The company's profitability continues to improve, with a net profit margin of 14.8% in Q3 2024, up 11.3 percentage points year-on-year [6]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported a gross margin of 29.6%, an increase of 8.3 percentage points year-on-year, and a net profit margin of 12.5%, up 10.1 percentage points year-on-year [1]. - The company’s Q3 2024 gross margin was 30.4%, reflecting an increase of 8.7 percentage points year-on-year and a slight increase of 0.2 percentage points quarter-on-quarter [1]. Earnings Forecast - The company is expected to achieve net profits of 3.5 billion yuan, 4.8 billion yuan, and 6.0 billion yuan for the years 2024, 2025, and 2026, respectively, corresponding to PE valuations of 39, 28, and 23 times [7]. - The projected revenue for 2024 is 27.69 billion yuan, with a year-on-year growth rate of 32% [4]. Market Position - The company’s products, particularly in the high-end smartphone and automotive sectors, are gaining market share, with the OV50H sensor being widely adopted in domestic high-end smartphones [6]. - The company continues to optimize its product and supply chain structure, driving sustained profitability growth [6].