Amlogic(688099) 国信证券·2024-11-04 14:00Investment Rating - The investment rating for the company is "Outperform the Market" [3][10]. Core Views - The company has shown a significant increase in revenue and net profit, with a year-on-year revenue growth of 20.28% and a net profit growth of 89.26% for the first three quarters of the year [1]. - The gross margin has improved sequentially by 1.88 percentage points, reaching 38.22% in the third quarter, indicating enhanced operational efficiency [1]. - The company is expanding its product lines, successfully introducing a new 6nm chip into the operator market, which is expected to drive future growth [1]. Financial Performance Summary - For the first three quarters, the company achieved revenue of 4.64 billion yuan and a net profit of 594 million yuan [1]. - The third quarter alone saw revenue of 1.62 billion yuan, with a year-on-year increase of 7.73% [1]. - The comprehensive gross margin for the first three quarters was 36.37%, with a net margin of 12.80% [1]. Product Development and Market Position - The T series has become the company's largest product line, growing over 50% year-on-year [1]. - The W series WiFi6 products are expected to exceed sales of 10 million units in 2024 [1]. - The new 6nm chip, based on ARM V9 architecture, has shown significant performance improvements, with CPU performance up over 60% and GPU performance up over 230% compared to previous generations [1]. Future Projections - Revenue projections for 2024-2026 are 64.33 billion yuan, 78.73 billion yuan, and 94.62 billion yuan, respectively [1]. - Net profit projections for the same period are 8.17 billion yuan, 10.52 billion yuan, and 13.19 billion yuan, respectively [1]. - The current stock price corresponds to a price-to-earnings ratio of 34.3, 26.6, and 21.3 for the years 2024, 2025, and 2026, respectively [1].