SANAN(SH:600703) Great Wall Securities·2024-11-05 12:41Investment Rating - The report maintains an "Accumulate" rating for the company [6] Core Views - The company has shown significant improvement in net profit for Q3 2024, driven by an increase in high-end LED product sales and growth in integrated circuit business [2][3] - The company's revenue for the first three quarters of 2024 reached 11.855 billion, a year-on-year increase of 16.73%, with a net profit of 247 million, up 43.21% year-on-year [1][2] - The report highlights the company's ongoing product structure optimization and cost reduction efforts, which have positively impacted profitability [2][6] Financial Performance Summary - Revenue (in million): - 2022A: 13,222 - 2023A: 14,053 - 2024E: 17,860 - 2025E: 21,611 - 2026E: 25,961 [1][10] - Net Profit (in million): - 2022A: 685 - 2023A: 367 - 2024E: 1,176 - 2025E: 1,897 - 2026E: 2,746 [1][10] - The company's gross margin for Q3 2024 was 10.31%, an increase of 2.20 percentage points year-on-year [2] - The company expects net profits for 2024-2026 to be 1.176 billion, 1.897 billion, and 2.746 billion respectively, with corresponding EPS of 0.24, 0.38, and 0.55 [6] Product and Market Development Summary - The company has seen a 13.61% year-on-year increase in revenue from LED epitaxial chips in the first half of 2024, with high-end products contributing significantly [3][4] - The integrated circuit business has also grown, with a 16.85% increase in revenue in the first half of 2024 [4][5] - The company is expanding its MiniLED and Micro LED product lines, with applications in various sectors including automotive and plant lighting [3][4]