Wuhan Jingce Electronic (300567) 华安证券·2024-11-07 09:31Investment Rating - Maintained "Overweight" rating [1] Core Views - The company's 2024Q3 performance continued to grow, with significant breakthroughs in advanced semiconductor process equipment [2] - Revenue for the first three quarters of 2024 reached RMB 1.831 billion, a year-on-year increase of 18.5%, with net profit attributable to the parent company of RMB 82 million, a year-on-year increase of 752.58% [2] - Q3 2024 revenue was RMB 710 million, a year-on-year increase of 63.35%, with net profit attributable to the parent company of RMB 32 million, a year-on-year increase of 231.25% [2] - Gross margin for Q3 2024 was 43.97%, a year-on-year decrease of 4.60 percentage points, while net margin attributable to the parent company was 4.57%, a year-on-year increase of 10.25 percentage points [2] Business Layout and Performance - The company optimized its business layout, with semiconductor business leading growth [3] - Display segment revenue for Jan-Sep 2024 was RMB 1.268 billion, a year-on-year increase of 20.54%, while semiconductor segment revenue was RMB 407.97 million, a year-on-year increase of 95.33% [3] - New energy segment revenue was RMB 122.66 million, a year-on-year decrease of 51.51% [3] - Total orders on hand as of October 24, 2024, were approximately RMB 3.168 billion, with display, semiconductor, and new energy orders at RMB 831 million, RMB 1.69 billion, and RMB 646 million, respectively [3] R&D and Innovation - R&D investment for Jan-Sep 2024 was RMB 474.34 million, an increase of RMB 22.96 million compared to the same period last year [4] - The company made breakthroughs in display testing, focusing on mid and front-end panel manufacturing equipment, intelligent and precision optical instruments, and new display products such as OLED and Micro-OLED [4] - In semiconductor testing, the company achieved significant progress in advanced process technologies, with core products covering advanced processes and securing repeat orders for film thickness products, OCD equipment, and electron beam defect review equipment [4] Financial Forecasts - Adjusted revenue forecasts for 2024-2026 to RMB 2.798 billion, RMB 3.382 billion, and RMB 3.993 billion, respectively [5] - Adjusted net profit attributable to the parent company for 2024-2026 to RMB 196 million, RMB 330 million, and RMB 404 million, respectively [5] - Diluted EPS for 2024-2026 is projected at RMB 0.72, RMB 1.21, and RMB 1.48, respectively [5] - Current PE ratios for 2024-2026 are 89x, 53x, and 43x, reflecting the company's long-term growth potential in semiconductor and display testing equipment [5] Financial Metrics - Revenue for 2023 was RMB 2.429 billion, with a year-on-year decrease of 11.0%, while 2024E revenue is projected at RMB 2.798 billion, a year-on-year increase of 15.2% [8] - Net profit attributable to the parent company for 2023 was RMB 150 million, with a year-on-year decrease of 44.8%, while 2024E net profit is projected at RMB 196 million, a year-on-year increase of 30.8% [8] - Gross margin for 2023 was 48.9%, while 2024E gross margin is projected at 45.5% [8] - ROE for 2023 was 3.6%, while 2024E ROE is projected at 4.7% [8] Valuation and Ratios - Current P/E ratios for 2024-2026 are 89x, 53x, and 43x, respectively [5] - P/B ratios for 2024-2026 are 4.6x, 4.4x, and 4.1x, respectively [8] - EV/EBITDA ratios for 2024-2026 are 4.58x, 3.39x, and 2.87x, respectively [8]