AWINIC(688798) Huaan Securities·2024-10-30 00:41Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The gross margin continues to improve, and the revenue structure is increasingly optimized [1] - The company reported a revenue of 2.37 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 32.7% [1] - The net profit attributable to the parent company for the first three quarters reached 180 million yuan, a significant year-on-year increase of 264.7% [1] - The company’s gross margin for Q3 2024 was 32.9%, an increase of 10.8 percentage points year-on-year and 4.0 percentage points quarter-on-quarter [1] - The company is expanding its product offerings from consumer electronics into AIoT, industrial, and automotive markets, thereby broadening its customer base and industry depth [1] Financial Performance Summary - The company’s revenue is projected to grow from 2.53 billion yuan in 2023 to 4.92 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 22.7% [2][4] - The net profit attributable to the parent company is expected to increase from 51 million yuan in 2023 to 607 million yuan in 2026, reflecting a CAGR of 51.8% [2][4] - The gross margin is forecasted to improve from 24.8% in 2023 to 32.1% in 2026 [2][4] - The earnings per share (EPS) is anticipated to rise from 0.22 yuan in 2023 to 2.61 yuan in 2026 [2][4] Cash Flow and Investment - The operating cash flow is expected to decrease from 429 million yuan in 2023 to 272 million yuan in 2024, before recovering to 586 million yuan by 2026 [3] - The company is projected to have a net increase in cash of 434 million yuan in 2024, with further increases in subsequent years [3] Balance Sheet Overview - Total assets are expected to grow from 4.94 billion yuan in 2023 to 6.88 billion yuan in 2026 [4] - The company’s total liabilities are projected to increase from 1.31 billion yuan in 2023 to 1.96 billion yuan in 2026 [4] - The equity attributable to the parent company is forecasted to rise from 3.62 billion yuan in 2023 to 4.93 billion yuan in 2026 [4]