MICROGATE(SZ:300319) EBSCN·2024-11-08 18:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 13.79 CNY [4]. Core Insights - The company reported a record high net profit attributable to shareholders in Q3 2024, with a significant improvement in profitability [1]. - Revenue for the first three quarters of 2024 reached 2.385 billion CNY, a year-on-year increase of 6.11%, while net profit attributable to shareholders was 241 million CNY, up 31.14% year-on-year [1]. - The company is focusing on expanding its magnetic component business in automotive and server sectors, while also developing products in collaboration with leading clients [1]. - Anticipated net profits for 2024 and 2025 have been adjusted downwards to 338 million CNY and 407 million CNY respectively, with a new forecast for 2026 at 452 million CNY [2]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 932 million CNY, a year-on-year increase of 11.15% and a quarter-on-quarter increase of 20.04% [1]. - The gross margin for Q3 2024 was 22.20%, with a net margin of 10.58% [1]. - The company’s net profit for Q3 2024 was 97 million CNY, reflecting a year-on-year growth of 17.15% [1]. Market Trends - The recovery in the communications and consumer electronics markets has positively impacted the demand for electronic components, particularly in the smartphone sector [1]. - The company is actively engaging with major clients in the automotive electronics sector, including BYD, Geely, and international Tier 1 manufacturers [1]. Future Outlook - The company is preparing for capacity adjustments to meet the anticipated demand from the recovering communications and consumer electronics markets [1]. - The forecasted P/E ratios for 2024, 2025, and 2026 are 36X, 29X, and 27X respectively, indicating a favorable market outlook [2].