Silan(SH:600460) China Post Securities·2024-11-05 08:48Investment Rating - The report maintains a "Buy" rating for the company, Silan Microelectronics (600460) [3][4]. Core Views - The company reported a revenue of 8.163 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 18.32%. The net profit attributable to shareholders was 29 million yuan [4]. - The company is focusing on high-barrier markets such as large home appliances, communications, industrial, new energy, and automotive sectors, with over 73% of revenue coming from these areas [4]. - The third quarter revenue was 2.889 billion yuan, showing a quarter-on-quarter increase of 2.87%, and the net profit for Q3 was 54 million yuan, indicating a turnaround from losses [4]. - The gross margin for Q3 was 18.14%, a decrease of 3.7% year-on-year but an increase of 0.18% quarter-on-quarter. The company aims to stabilize and improve gross margins in Q4 through product structure adjustments and cost control [4]. - The company is optimizing production lines and integrating resources, maintaining profitability in its 5-6 inch production lines, and expects the 8-inch production line to achieve profitability next year [4]. Financial Summary - The latest closing price is 28.51 yuan, with a total market capitalization of 47.4 billion yuan [3]. - The company’s revenue projections for 2024-2026 are 10.992 billion yuan, 12.777 billion yuan, and 14.168 billion yuan, respectively, with growth rates of 17.69%, 16.24%, and 10.89% [5]. - The net profit attributable to shareholders is projected to be 81.09 million yuan in 2024, 484.96 million yuan in 2025, and 726.02 million yuan in 2026, with significant growth rates [5][7]. - The company’s debt-to-asset ratio is 43.9%, indicating a moderate level of leverage [3][7].