JONES TECH PLC(SZ:300684) Huaxin Securities·2024-11-01 06:42Investment Rating - The report maintains a "Buy" rating for the company [1]. Core Views - The company has shown impressive performance in Q3 2024, with significant growth in revenue and net profit, driven by the increasing demand for thermal management materials due to the rise of edge AI technology [1][4]. - The company is expected to benefit from the growing need for thermal solutions in consumer electronics, particularly as AI technology transitions from cloud to edge computing [4][5]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 1.096 billion yuan, a year-on-year increase of 14.80%, and a net profit attributable to shareholders of 132 million yuan, up 143.03% year-on-year [1]. - In Q3 2024, the company achieved revenue of 452 million yuan, representing a year-on-year growth of 45.19% and a quarter-on-quarter increase of 31.12% [1]. - The gross profit margin for Q3 2024 was 33.02%, an increase of 4.96 percentage points from the previous quarter [1]. Market Position and Growth Drivers - The company is positioned as a leader in thermal materials, with a comprehensive product lineup that includes high thermal conductivity graphite and thermal interface materials [4]. - The demand for thermal management solutions is expected to accelerate due to the increasing performance requirements of AI chips, which generate significant heat during operation [4][5]. Earnings Forecast - The company is projected to generate revenues of 1.562 billion yuan in 2024, 2.011 billion yuan in 2025, and 2.492 billion yuan in 2026, with corresponding EPS of 0.53 yuan, 0.77 yuan, and 0.95 yuan respectively [5]. - The current stock price corresponds to a PE ratio of 41 for 2024, 29 for 2025, and 23 for 2026, indicating potential for growth as edge AI applications expand [5].