Highbroad Advanced Material (Hefei) (301321) 东兴证券·2024-11-14 08:57Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Viewpoints - The company achieved a revenue of 652 million yuan in the first three quarters of 2024, representing a year-on-year growth of 14.03%. However, the net profit attributable to shareholders was -99.09 million yuan, a decline of 229.47% compared to the previous year [1][2]. - The company is focusing on expanding its Mini-LED backlight display module market, particularly in the automotive sector, which is expected to grow significantly [3][4]. - The company is optimizing its product structure and investing in new energy vehicles and smart connected vehicles, aiming to enhance profitability through diversified product offerings [4]. Summary by Sections Financial Performance - In Q3 2024, the company's gross margin was 10.25%, showing a quarter-on-quarter improvement of 0.80 percentage points. The gross margin for the first three quarters was 10.67%, down 3.74 percentage points year-on-year [2]. - The net loss for Q3 2024 was -31.41 million yuan, which is a reduction in loss compared to Q2 2024. The operating cash flow was -9.63 million yuan, a decline of 112.04% year-on-year [2]. Market Outlook - The global Mini-LED backlight module market is projected to reach 5.7 billion USD by 2026, with the automotive Mini-LED products already in mass production as of June 2024 [3]. - The personal computer market is expected to recover, with an estimated shipment of 267 million units in 2024, a growth of 8% from 2023 [3]. Strategic Initiatives - The company is strategically investing 170 million yuan to establish a fund focused on new energy vehicles and smart connected vehicles, aiming to strengthen its supply chain [4]. - The company is enhancing its operational management to reduce costs and improve efficiency, thereby increasing production yield and developing high-value-added products [4].