JoulWatt(SH:688141) Guoxin Securities·2024-10-31 14:45Investment Rating - The investment rating for the company is "Outperform the Market" [3][12]. Core Views - The company achieved a record high revenue in the third quarter, with a year-on-year revenue growth of 18.62% for the first three quarters of 2024, amounting to 1.192 billion yuan. The net profit attributable to the parent company was -507 million yuan, and the net profit after deducting non-recurring items was -533 million yuan. In Q3 2024, the revenue reached 441 million yuan, representing a year-on-year increase of 24.15% and a quarter-on-quarter increase of 4.7% [1]. - The gross margin for the first three quarters of 2024 was 28.03%, a decrease of 0.7 percentage points compared to the same period last year. However, the gross margin for Q3 2024 was 28.45%, which is an increase of 5.0 percentage points year-on-year and 0.6 percentage points quarter-on-quarter [1]. - The company has a diverse downstream distribution, with various multi-phase controllers and DrMOS products in mass production. In the first half of 2024, approximately 40% of revenue came from consumer electronics, 22% from industrial and computing sectors, and 35% from communication electronics and automotive sectors [1]. - The company is actively investing in R&D, with R&D expenses increasing by 23.08% year-on-year to 490 million yuan, and the R&D expense ratio rising by 1.5 percentage points to 41.14% [1]. Financial Summary - For 2024, the company is expected to generate revenue of 1.746 billion yuan, a growth of 34.7% compared to 2023. The net profit attributable to the parent company is projected to be -511 million yuan [2]. - The earnings per share (EPS) for 2024 is estimated at -1.14 yuan, with a significant improvement expected in 2026, where EPS is projected to be 0.17 yuan [2]. - The company's EBIT margin is forecasted to be -21.3% in 2024, improving to 4.4% by 2026 [2].