Investment Rating - The report assigns an "Overweight" rating to the company, indicating a positive outlook on its stock performance [4] Core Views - The company's Q3 2024 performance met expectations, with revenue of 526million(YoY−7.444.82 million (YoY +222.6%, QoQ +571.6%) [1] - The company's 12-inch production line is nearing full capacity, with a utilization rate of 98.5% and revenue of 263million(YoY−2.56.7 billion, averaging 2−2.5billionannuallyfrom2024to2026[2]−Thecompany′srevenueguidanceforQ42024is530-540 million, with a gross margin range of 11%-13% [1] Financial Performance - The company's revenue for 2024E is projected to be 1.996billion(YoY−13103 million (YoY -63%) [3] - Revenue is expected to grow to 2.251billionin2025E(YoY+132.728 billion in 2026E (YoY +21%), with net profit increasing to 157millionand237 million, respectively [3] - The company's EPS is forecasted to be 0.07in2024E,0.11 in 2025E, and 0.16in2026E[3]MarketandIndustryInsights−Thecompany′s8−inchproductionlinehasautilizationrateof113263 million (YoY -11.9%, QoQ +7.2%) [2] - The demand for CIS and power management chips is increasing, with revenue from analog and power management reaching 123million(YoY+21.8163 million (YoY -30.8%, QoQ +7.2%) [4] Future Outlook - The company's new 12-inch production line is expected to drive revenue growth in the medium to long term, despite short-term depreciation cost pressures [2] - The company is well-positioned to benefit from the growth in AI and new energy vehicles, which are expected to boost demand for power management chips and other products [4]
