Tricolor(603516) 长城证券·2024-11-07 00:44Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [3][14]. Core Insights - The company has shown significant improvement in profitability, with a notable recovery in gross margins. The profit growth is attributed to the gradual recovery of business demand from key industry clients, expansion of product categories, and new business increments from the artificial intelligence sector [2]. - The company has made substantial progress in expanding its overseas business, establishing a partnership with a leading company in graphics technology and AI computing, which has resulted in a sequential increase in revenue from this collaboration [2]. - The company emphasizes its commitment to independent research and development, having established multiple R&D centers and obtained numerous patents, which strengthens its competitive edge in the audio and video chip sector [2]. Financial Summary - For the first three quarters of 2024, the company reported a revenue of 327 million yuan, a year-on-year decrease of 3.21%, while the net profit attributable to the parent company was 52 million yuan, reflecting a year-on-year increase of 344.55% [1]. - The company’s revenue for the third quarter was 93 million yuan, down 22.22% year-on-year, but the net profit increased by 146.34% year-on-year to 12 million yuan [1]. - The projected net profits for 2024, 2025, and 2026 are expected to be 132 million yuan, 207 million yuan, and 332 million yuan respectively, with corresponding P/E ratios of 47, 30, and 19 times [3].