EMPYREAN(SZ:301269)2024-10-31 01:16Investment Rating - The report maintains an "Outperform" rating for the company [4][7]. Core Views - The company reported a revenue of 744 million yuan for the first three quarters of 2024, representing a year-on-year growth of 16.3%. However, the net profit attributable to the parent company decreased by 65.8% to 58.55 million yuan [4][5]. - The company has made significant progress in its product lines, enhancing its full-process capabilities, which is expected to support future growth [6][7]. - The report indicates a slight downward revision in revenue and net profit forecasts for 2024-2026 due to factors affecting downstream order confirmations [7]. Financial Summary - For 2024E, total revenue is projected to be 1,255 million yuan, with a year-on-year growth rate of 24.2%. The net profit is expected to be 103 million yuan, reflecting a decline of 48.6% compared to the previous year [8][10]. - The gross margin is expected to remain stable at around 92.5% for 2024E, with a projected return on equity (ROE) of 2.1% [8][10]. - The company’s R&D expenses are anticipated to increase significantly, reaching 939 million yuan by 2025E, which may pressure short-term profitability [5][10].