SANAN(600703) 长江证券·2024-11-04 07:26Investment Rating - The report maintains a "Buy" rating for Sanan Optoelectronics (600703 SH) [6] Core Views - Sanan Optoelectronics achieved revenue of 11 855 billion yuan in the first three quarters of 2024, a YoY increase of 16 73% [1][2] - Net profit attributable to the parent company reached 247 million yuan, a YoY increase of 43 21% [1][2] - The company's high-end product strategy is steadily advancing, with a significant improvement in profitability [2] - The report forecasts net profit attributable to the parent company for 2024-2026 to be 708 million, 1 552 billion, and 2 493 billion yuan respectively, with corresponding P E ratios of 97X, 44X, and 28X [4] Financial Performance - In Q3 2024, the company achieved revenue of 4 175 billion yuan, a YoY increase of 13 27% and a QoQ increase of 1 29% [2] - Net profit attributable to the parent company in Q3 2024 was 63 million yuan, a YoY increase of 2278 24% [2] - Gross margin in Q3 2024 improved to 10 31%, a YoY increase of 2 20 percentage points and a QoQ increase of 1 32 percentage points [2] Business Segments Integrated Circuits - The company's RF front-end products reached a capacity of 15 000 wafers/month for gallium arsenide and 150KK/month for filters [3] - Hunan Sanan has a silicon carbide supporting capacity of 16 000 wafers/month and a silicon-based gallium nitride capacity of 2 000 wafers/month [3] - The joint venture with STMicroelectronics is expected to achieve a production capacity of 480 000 wafers/year by 2028 [3] LED Business - Mini LED products have been applied in various fields including TVs, monitors, laptops, automotive displays, and VR [4] - Micro LED technology has established cooperation with major domestic and international manufacturers [4] - The company has secured stable orders from leading domestic and international automotive manufacturers [4] Future Outlook - The company's high-end product strategy and technological advancements are expected to drive long-term growth [3][4] - The report projects a significant increase in net profit attributable to the parent company over the next three years, with a compound annual growth rate of over 50% [4]