ThunderSoft(300496) 长江证券·2024-11-20 03:33Investment Rating - The report maintains a "Buy" rating for Thundersoft (300496 SZ) [6] Core Views - Thundersoft's Q3 2024 results show a sequential improvement despite overall pressure in the first three quarters [6] - The company's revenue for the first three quarters of 2024 was RMB 3 694 billion, down 4 70% YoY, with net profit attributable to shareholders of RMB 152 million, down 74 92% YoY [6] - Thundersoft is a global leader in intelligent operating system products and technologies, with a strong focus on edge-side intelligence, which is expected to drive future growth [6] Business Performance - Q3 2024 revenue was RMB 1 294 billion, down 7 04% YoY but up 5 80% QoQ, with net profit attributable to shareholders of RMB 48 million, down 78 17% YoY but significantly higher than Q2's RMB 14 million [6] - Q3 2024 gross margin improved to 35 82%, up 1 93 percentage points QoQ [6] - The intelligent IoT business showed signs of recovery, while the intelligent automotive and software businesses remain under pressure due to downstream demand and technological upgrades [6] Strategic Focus - Thundersoft is firmly positioned in edge-side intelligence, with AI PCs and AI smartphones expected to bring new growth momentum [7] - The company has strong partnerships with core chip and brand manufacturers, facilitating product commercialization [7] - In the intelligent automotive sector, the company's Drip OS integrates global automotive and application ecosystems, with collaborations with Qualcomm, AMD, Intel, and Dirac [7] - In the IoT sector, the company established Xiaowu Intelligent in September 2023 and Longxing Zhixun in October 2024, expanding its robotics and intelligent application services [7] - Thundersoft has also launched MR and vehicle-road-cloud integrated product solutions, further solidifying its edge-side intelligence positioning [7] Financial Projections - The company is expected to achieve net profit attributable to shareholders of RMB 311 million, RMB 492 million, and RMB 725 million in 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 85x, 54x, and 36x [8] - Revenue is projected to grow from RMB 5 462 billion in 2024 to RMB 7 414 billion in 2026, with gross margins remaining stable at around 36% [19] - Operating cash flow is expected to improve from RMB 592 million in 2024 to RMB 462 million in 2026 [19] Market Position - Thundersoft is a global leader in operating system services, well-positioned to benefit from the shift in industrial value growth from cloud to edge [8] - The company's software platform capabilities and edge-side intelligence positioning are expected to capture opportunities in terminal intelligence [8]