LY iTECH(SZ:002600) Huaxin Securities·2024-11-12 09:03Investment Rating - The report maintains a "Buy" investment rating for the company [1][5]. Core Insights - The company reported strong performance in Q3 2024, with revenue reaching 31.485 billion yuan, a year-on-year increase of 27.75%. However, the net profit attributable to shareholders decreased by 24.85% to 1.405 billion yuan [1][4]. - The growth in revenue for Q3 2024 was 32.14% year-on-year and 32.66% quarter-on-quarter, with a net profit of 713 million yuan, reflecting a year-on-year increase of 14.68% and a quarter-on-quarter increase of 208.13% [1][4]. - The company is positioned to benefit significantly from the increasing demand for cooling solutions in AI-enabled consumer electronics, particularly as AI smartphones and AIPC (AI Personal Computers) are expected to see substantial growth [1][4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 31.485 billion yuan, with a year-on-year growth of 27.75%. The net profit attributable to shareholders was 1.405 billion yuan, down 24.85% year-on-year, while the net profit excluding non-recurring items was 1.187 billion yuan, also down 24.85% [1][4]. - In Q3 2024, the company reported a revenue of 12.365 billion yuan, a year-on-year increase of 32.14% and a quarter-on-quarter increase of 32.66%. The net profit for this quarter was 713 million yuan, up 14.68% year-on-year and 208.13% quarter-on-quarter [1][4]. Market Trends - The report highlights the accelerating adoption of AI technology in consumer electronics, predicting that global AI smartphone shipments will reach 912 million units by 2028, with a CAGR of 78.4% from 2023 to 2028. Additionally, AIPC shipments are expected to reach 103 million units by 2025, with a penetration rate of 85% by 2027 [1][4]. - The company is identified as a core supplier for Apple, which is expected to drive demand for its cooling solutions as AI technology becomes more prevalent in high-end consumer electronics [4][5]. Profit Forecast - The company’s revenue is projected to reach 41.341 billion yuan in 2024, 49.601 billion yuan in 2025, and 57.775 billion yuan in 2026. The earnings per share (EPS) are forecasted to be 0.36 yuan in 2024, 0.43 yuan in 2025, and 0.57 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 24.8, 20.9, and 15.7 [5][6].