LY iTECH(SZ:002600) Huafu Securities·2024-10-31 06:39Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [10]. Core Views - The company achieved revenue of 31.485 billion in the first three quarters of 2024, a year-on-year increase of 27.75%, while the net profit attributable to shareholders was 1.405 billion, a decrease of 24.85% [1]. - In Q3 2024, the company recorded revenue of 12.365 billion, up 32.14% year-on-year, and a net profit of 713 million, an increase of 14.68%, exceeding expectations [1]. - The company is positioned to benefit from the AI wave, particularly in the fields of heat dissipation, battery, and charging technologies, which are crucial for adapting to AI workloads [2]. - The company has a strong presence in consumer electronics innovation, focusing on key components for AI terminals, foldable devices, and XR technologies [2]. Financial Performance and Forecast - The company is projected to achieve revenues of 40.465 billion, 49.084 billion, and 58.654 billion for the years 2024, 2025, and 2026, respectively, with net profits of 2.031 billion, 2.868 billion, and 3.754 billion [3][4]. - The P/E ratios for the years 2024, 2025, and 2026 are expected to be 31.5, 22.3, and 17.1, respectively [3][4]. - The company’s revenue growth rates are forecasted at 19% for 2024, 21% for 2025, and 19% for 2026 [3]. Key Financial Metrics - As of October 30, 2024, the company's closing price was 9.14, with a total market capitalization of approximately 63 billion [4]. - The company’s total assets are projected to grow from 41.533 billion in 2024 to 53.427 billion in 2026 [6]. - The company’s net profit margin is expected to improve from 5.0% in 2024 to 6.4% in 2026 [6].