Guangdong Skychem Technology (SH:688603) Huaxin Securities·2024-10-30 02:30Investment Rating - The report maintains a "Buy" investment rating for the company [1][3]. Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue of 273 million yuan, a year-on-year increase of 10.53%, and a net profit attributable to shareholders of 57.17 million yuan, up 37.25% year-on-year [1]. - The company plans to relocate its registered address from Zhuhai, Guangdong to Pudong, Shanghai, and to appoint Shi Jianbin, Vice Secretary-General of the Shanghai Integrated Circuit Association, as an independent director [1][2]. - The growth in performance is attributed to the advantages of domestic substitution and an increase in the sales proportion of high-margin products [1][2]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 100 million yuan, a year-on-year increase of 15.29% and a quarter-on-quarter increase of 8.26%. The net profit attributable to shareholders was 20.51 million yuan, up 32.20% year-on-year and 9.63% quarter-on-quarter [1]. - The company has shown a consistent trend of increasing net profit for four consecutive quarters since Q4 2023 [1]. Business Development - The company is enhancing its semiconductor business, which is expected to become a new growth point for performance. This includes investments in advanced packaging and advanced process materials [2]. - The relocation to Shanghai is anticipated to leverage the city's industrial policies, capital, and talent advantages in the integrated circuit sector [1][2]. Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 75 million, 100 million, and 131 million yuan, respectively, with corresponding EPS of 1.29, 1.71, and 2.25 yuan. The current stock price corresponds to PE ratios of 73, 55, and 42 times for the respective years [3][5].