MTC(002429)2024-10-29 00:31Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential upside of over 20% within the next six months [3][11]. Core Views - The company reported a revenue of 16.16 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 27.39%. The net profit attributable to shareholders was 1.37 billion yuan, up 7.93% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 6.64 billion yuan, a year-on-year increase of 34.15%, but the net profit decreased by 14.08% year-on-year [1]. - The company is focusing on its core business while expanding into new areas such as optical communication devices, which is expected to enhance its long-term competitiveness and sustainable growth [1]. Financial Performance Summary - For 2024E, the company is projected to achieve a revenue of 21.52 billion yuan, with a growth rate of 25.34% [2]. - The net profit attributable to shareholders is expected to reach 1.85 billion yuan in 2024E, reflecting a growth rate of 16.29% [2]. - The company's gross margin for Q3 2024 was 14.4%, down 4.3 percentage points year-on-year, primarily due to increased costs from integrating new businesses [1]. Business Segments - The multimedia audio-visual products and services segment saw the company rank second in smart display terminal shipments, with approximately 4.4 million units shipped in Q3 2024, a 40% increase year-on-year [1]. - The LED industry chain reported steady revenue growth, particularly in Mini/Micro COB displays [1]. - The company has successfully acquired new businesses in the optical communication sector, establishing a vertical industry chain that includes optical communication devices, modules, and chips [1]. Valuation Metrics - The projected P/E ratios for the company are 13.0x for 2024E, 10.3x for 2025E, and 8.9x for 2026E [1][2]. - The company’s market capitalization is approximately 23.95 billion yuan, with a total A-share capital of 4,526.94 million shares [3].