HGTECH(SZ:000988) Shanxi Securities·2024-11-06 03:23Investment Rating - The report maintains an "A" rating for the company, indicating a strong buy recommendation based on expected performance relative to the benchmark index [3][6]. Core Insights - The company reported a revenue of 9.002 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 23.42%. The net profit attributable to shareholders was 938 million yuan, up 15.19% year-on-year [3]. - In Q3 2024 alone, the company achieved a revenue of 3.802 billion yuan, a significant year-on-year increase of 67.49% and a quarter-on-quarter increase of 25.47% [3]. - The company's gross margin and net margin for the first three quarters were 20.98% and 10.44%, respectively, showing a decline compared to the previous year [3]. Financial Performance - The company's revenue from the perception business was 2.506 billion yuan, up 10% year-on-year, while the optical connection business revenue reached 3.472 billion yuan, up 52% year-on-year [3]. - The laser and intelligent manufacturing business generated 2.655 billion yuan, reflecting an 18% year-on-year increase [3]. - The company expects net profits for 2024-2026 to be 1.382 billion yuan, 1.702 billion yuan, and 2.115 billion yuan, respectively, with year-on-year growth rates of 37.3%, 23.1%, and 24.3% [6][7]. Business Segments - The optical module business is performing exceptionally well, with significant growth in domestic demand and expected improvements in gross margins due to increased production capacity and product rate enhancements [4][5]. - The intelligent manufacturing segment is experiencing steady growth, particularly in the new energy and smart manufacturing sectors, with successful market expansion in regions such as the U.S., Europe, and the Middle East [5][6]. - The perception business is diversifying its product line and showing notable growth in overseas markets, particularly in the automotive sector [6]. Valuation Metrics - The report projects earnings per share (EPS) of 1.37 yuan, 1.69 yuan, and 2.10 yuan for the years 2024, 2025, and 2026, respectively [6][7]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 24.6 in 2024 to 16.1 in 2026, indicating a potentially attractive valuation as earnings grow [7][12].