MTC(002429)2024-11-05 10:33Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.10 CNY over the next six months [1]. Core Insights - The company reported a revenue of 16.16 billion CNY for the first three quarters of 2024, representing a year-on-year growth of 27.4%. However, the net profit attributable to shareholders was 1.37 billion CNY, a growth of only 7.9% year-on-year [2][4]. - In Q3 2024, the company achieved a revenue of 6.64 billion CNY, marking a significant year-on-year increase of 34.1%. However, the net profit for the same quarter decreased by 14.1% to 460 million CNY [2][3]. - The company's television shipments increased by 40% year-on-year, with a total of 4.4 million units shipped in Q3 2024, primarily driven by North American customers preparing for the Q4 peak season [2][3]. Summary by Sections Revenue and Profitability - The company’s revenue for 2024 is projected to reach 21.36 billion CNY, with a growth rate of 24.41%. The net profit attributable to shareholders is expected to be 1.83 billion CNY, reflecting a growth rate of 15.47% [5][12]. - The gross margin for Q3 2024 decreased by 4.3 percentage points to 14.4%, attributed to asset impairment losses and increased tax expenses [3][4]. Business Segments - The company is actively adjusting its networking business, which includes products like set-top boxes and smart speakers, amid increasing competition. Additionally, it is expanding into the optical communication components sector [3][4]. - The LED industry segment is expected to maintain a revenue growth rate similar to the first half of the year, projected at 30% [2][3]. Earnings Forecast - The company’s earnings per share (EPS) for 2024, 2025, and 2026 are forecasted to be 0.41 CNY, 0.48 CNY, and 0.57 CNY, respectively. The target price of 7.10 CNY is based on a price-to-earnings (PE) ratio of 10 for the ODM segment and 20 for the LED segment [4][9].