
Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a significant improvement in profitability with a year-on-year increase in revenue of 13.61%, reaching 143.73 billion yuan, and a net profit attributable to shareholders of 3.31 billion yuan, up 223.80%, exceeding previous expectations [4][5]. - The operating cash flow net amount was 33.87 billion yuan, reflecting a year-on-year growth of 46.88% [4]. - The company plans to repurchase shares at a price not exceeding 6 yuan per share, with a total scale of up to 1 billion yuan for implementing an equity incentive plan [4]. Summary by Sections Financial Performance - In Q3 2024, the company achieved revenue of 50.35 billion yuan, a year-on-year increase of 8.65% and a quarter-on-quarter increase of 5.99% [4]. - The net profit attributable to shareholders for Q3 was 1.03 billion yuan, showing a year-on-year increase of 258.21% but a quarter-on-quarter decrease of 21.11% [4]. - The gross profit margin was 17.41%, remaining stable quarter-on-quarter [4]. Market Dynamics - Despite a lackluster peak season for large-size TV panels, the company leveraged solid profit foundations from small and medium-sized displays and a recovery in flexible OLED utilization rates to offset the impacts of declining utilization and prices in large-size LCDs [4]. - Global TV panel shipments in Q3 2024 reached 62.1 million units, a year-on-year increase of 1% but a quarter-on-quarter decrease of 5% [4]. - The company’s display device shipments in Q3 were 12.9 million units, reflecting a year-on-year growth of 14% [4]. Future Outlook - Looking ahead to Q4 2024, the company anticipates a significant recovery in large-size panel shipments driven by domestic replacement policies, with demand for oversized panels being activated [4]. - The flexible OLED business is expected to recover, with substantial potential for reducing losses as production stabilizes [5]. - The company forecasts operating cash flow to exceed 45 billion yuan in 2024, with free cash flow projected to surpass 20 billion yuan if capital expenditures remain at last year's levels [6].