Gian(SZ:300709) Huaxin Securities·2024-11-12 07:46Investment Rating - The report maintains a "Buy" investment rating for the company [1] Core Views - The company's performance is under short-term pressure, but its long-term development remains positive, driven by the MIM hinge and cooling business [1][4] - The company reported a revenue of 1.576 billion yuan for the first three quarters of 2024, a year-on-year decrease of 3.08%, and a net profit attributable to shareholders of 100 million yuan, down 14.57% year-on-year [1] - The report highlights the seasonal fluctuations in downstream terminal demand, with expectations for a recovery in the fourth quarter based on customer new product launches [1][4] Summary by Sections Financial Performance - In Q3 2024, the company achieved a revenue of 574 million yuan, a year-on-year decline of 31.97% and a quarter-on-quarter decrease of 6.43% [1] - The net profit attributable to shareholders for Q3 2024 was 40 million yuan, down 73.63% year-on-year and 53.20% quarter-on-quarter [1] - The gross profit margin for Q3 2024 was 25.09%, a decrease of 15.01 percentage points quarter-on-quarter, while the net profit margin was 6.91%, down 6.99 percentage points quarter-on-quarter [1] Market Trends - The report notes an acceleration in the penetration of foldable devices, with the global shipment of foldable smartphones expected to reach 25 million units in 2024, a year-on-year growth of 37.6% [1][4] - The MIM market for mobile phones is projected to reach 2.961 billion USD by 2026, with a CAGR of 8.36% from 2021 to 2026 [1][4] Business Development - The company is expanding its MIM product offerings in the consumer electronics sector, focusing on components for foldable screens and hinges [4] - The company is also actively developing its liquid cooling business, which has significant growth potential, particularly in energy storage and edge computing server applications [4] - The MIM business is expected to benefit significantly from the increasing penetration of foldable devices, while the liquid cooling segment is anticipated to grow due to increased domestic investment in computing infrastructure [4] Earnings Forecast - The company is projected to achieve revenues of 3.010 billion, 3.943 billion, and 5.125 billion yuan for 2024, 2025, and 2026, respectively, with corresponding EPS of 1.62, 2.14, and 3.15 yuan [5] - The current stock price corresponds to a PE ratio of 28.9, 21.9, and 14.9 for the years 2024, 2025, and 2026, respectively [5]