FMSH(688385)2024-11-05 11:34Investment Rating - The report maintains a "Recommended" rating for the company, considering its position as a leading IC design company in China, particularly in the FPGA and high-reliability business sectors [1][3]. Core Viewpoints - The company reported a revenue of 2.684 billion yuan for the first three quarters of 2024, a year-on-year decrease of 1.99%, and a net profit attributable to shareholders of 427 million yuan, down 34.29% year-on-year [1]. - The company faces intense market competition, leading to pressure on profitability, with a gross margin of 55.05% for the first three quarters of 2024, down 9.53 percentage points year-on-year [1]. - Despite competitive pressures, the company continues to invest in R&D, with R&D expenses increasing by 6.07% year-on-year to 804 million yuan [1]. - The FPGA segment remains a stronghold for the company, which has established a significant technological advantage and continues to expand its product offerings [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 2.684 billion yuan, with a single-quarter revenue of 890 million yuan, reflecting a year-on-year decline of 5.55% [1]. - The net profit for the third quarter of 2024 was 79 million yuan, down 60.6% year-on-year, indicating significant profitability challenges [1]. - The company’s sales gross margin for the third quarter of 2024 was 52.15%, a decrease of 7.62 percentage points year-on-year [1]. - The forecast for net profit attributable to shareholders for 2024, 2025, and 2026 is adjusted to 548 million yuan, 737 million yuan, and 951 million yuan, respectively, with corresponding PE ratios of 67, 50, and 38 [2][4].