AWINIC(688798) Minsheng Securities·2024-11-01 10:53Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company has shown significant improvement in profitability, with a revenue of 2.366 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 32.71%. The net profit attributable to shareholders reached 178 million yuan, marking a turnaround from losses [2]. - The gross margin has been continuously improving, with a third-quarter gross margin of 32.92%, up 10.8 percentage points year-on-year and 4.02 percentage points quarter-on-quarter. This reflects the company's effective cost management and operational efficiency [2]. - The product matrix is expanding, with over 1,300 product models covering various fields such as consumer electronics, IoT, industrial, and automotive applications. New product launches in high-performance mixed-signal chips, power management chips, and signal chain chips are expected to drive future growth [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.366 billion yuan, with a net profit of 178 million yuan, and a non-recurring net profit of 136 million yuan, all showing significant year-on-year improvements [2]. - The third quarter alone saw a revenue of 785 million yuan, a year-on-year increase of 1.35%, and a net profit of 86 million yuan, reflecting a 55.27% quarter-on-quarter growth [2]. - The projected net profits for 2024, 2025, and 2026 are estimated at 249 million yuan, 512 million yuan, and 764 million yuan, respectively, with corresponding price-to-earnings ratios of 59, 29, and 19 [2][3].