CETC Chips(600877) AVIC Securities·2024-11-05 11:16Investment Rating - The investment rating for the company is "Buy" with a target price of 15.10 CNY per share [1]. Core Views - The company reported a revenue of 726 million CNY for the first three quarters of 2024, a decrease of 14.24% year-on-year, and a net profit attributable to shareholders of 59 million CNY, down 42.65% [1][4]. - The company is backed by the state-owned China Electronics Technology Group and focuses on silicon-based analog semiconductor chips, with products widely used in various sectors including IoT, consumer electronics, and automotive electronics [1][4]. - The company is undergoing adjustments in its business strategy, focusing on new fields such as satellite communication and new energy vehicles, in response to market pressures [1][4]. Financial Summary - For Q3 2024, the company achieved a revenue of 236 million CNY, a year-on-year decline of 15.46% and a quarter-on-quarter decline of 17.98% [1]. - The gross margin for Q3 2024 was 29.60%, down 5.48 percentage points year-on-year [1]. - The net profit margin for Q3 2024 was 8.70%, a decrease of 8.74 percentage points year-on-year [1]. - The company’s total assets amounted to 3,084.64 million CNY, with a debt-to-asset ratio of 14.95% [1][4]. Future Outlook - The company is expected to benefit from a potential turnaround in the semiconductor industry, with forecasts predicting net profits of 163 million CNY, 179 million CNY, and 204 million CNY for 2024, 2025, and 2026 respectively [6]. - The company is actively expanding into emerging industries such as satellite communication and low-altitude economy, which are anticipated to drive future growth [6][5].