Oriental Semi(SH:688261) SINOLINK SECURITIES·2024-10-31 06:56Investment Rating - The report maintains a "Buy" rating for the company [3][4]. Core Views - The company's revenue performance improved sequentially in Q3 2024, with a revenue of 261 million yuan, representing a year-on-year increase of 10.17% and a quarter-on-quarter increase of 5.91% [3]. - The gross profit margin has been gradually recovering due to product mix optimization and technological upgrades, reaching 18.22% in Q3 2024, an increase of 3.39 percentage points from the previous quarter [3]. - The company has shown confidence in its long-term development by completing a share buyback plan, repurchasing 434,857 shares at a total cost of approximately 26.02 million yuan [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 681 million yuan, down 11.62% year-on-year, and a net profit attributable to shareholders of 30.64 million yuan, down 76.73% year-on-year [3]. - The adjusted net profit after excluding non-recurring items was 4.30 million yuan, a decrease of 96.37% year-on-year [3]. Operational Analysis - The demand in the downstream market for power devices is recovering, leading to a gradual improvement in revenue and performance [3]. - Inventory turnover days decreased slightly from 167.63 days in the first half of 2024 to 164.77 days in Q3 2024, while accounts receivable turnover days improved from 52.55 days to 48.83 days [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 is 73 million, 152 million, and 254 million yuan, respectively, with corresponding EPS of 0.59, 1.24, and 2.07 yuan [4]. - The current stock price corresponds to P/E ratios of 79, 38, and 23 times for the years 2024, 2025, and 2026, respectively [4].