Dosilicon(688110) 东吴证券·2024-10-30 03:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has shown steady recovery in profitability, with a revenue increase of 20.4% year-on-year in the first three quarters of 2024, reaching 450 million yuan. The net profit attributable to shareholders improved by 10.9% year-on-year, amounting to a loss of 130 million yuan. In Q3 2024, the company achieved a revenue of 180 million yuan, a 37.4% increase year-on-year, and a net profit loss of 40 million yuan, reflecting a 44.9% year-on-year improvement [2] - The company is actively seizing market opportunities and expanding its market reach, leading to significant growth in product sales and a continuous increase in revenue over the past two quarters. The overall gross margin and net margin for the first three quarters of 2024 were 14.4% and -30.5%, respectively, showing improvements of 3.5 percentage points and 7.78 percentage points year-on-year [2] - The company is advancing its product lineup with updates in storage products, including NAND, NOR, DRAM, and MCP chips, which are being utilized in various sectors such as consumer electronics, automotive, security monitoring, and IoT. The company has successfully launched new capacity products in its 2xnm NAND Flash series and has fully ramped up production of the 25nm LPDDR4x series [3] - The company is deepening its integration strategy in the "storage, computing, and connectivity" domain, with ongoing research and development in 1xnm SLC NAND Flash technology and investments in Shanghai Lisan Technology Co., Ltd. to enhance its capabilities in high-end chip design and technology autonomy [4] Financial Forecasts - The company is projected to achieve net profits attributable to shareholders of 0.04 billion yuan, 1.8 billion yuan, and 2.4 billion yuan for the years 2024 to 2026, respectively. The current market capitalization corresponds to a price-to-earnings ratio of 58 and 43 times for the years 2025 and 2026, respectively [4]