FMSH(SH:688385) Huaxin Securities·2025-02-13 13:31Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's profitability is under short-term pressure due to intense competition in the existing market, leading to a slight decline in revenue and a significant drop in net profit [5][8] - The company is making steady progress with its next-generation FPGA products, which have completed sample testing and are being sold in small batches to select customers [6] - The storage product line has seen significant sales growth in the first half of 2024, benefiting from industry changes and stable pricing [7] Summary by Sections Financial Performance - In the first three quarters of 2024, the company achieved revenue of 2.684 billion yuan, a year-on-year decrease of 1.99%, and a net profit of 427 million yuan, down 34.29% [5] - The third quarter revenue was 890 million yuan, reflecting a year-on-year decline of 5.55% [5] Product Development - The company has a comprehensive FPGA product line with advanced technology, including million, billion, and ten billion gate FPGA products, as well as PSoC products [6] - The new generation of FPGA products is being developed using advanced 1xnm FinFET processes, with ongoing yield improvement efforts [6] Storage Product Line - The company has established a complete niche non-volatile memory product architecture, including EEPROM, NOR Flash, and NAND Flash [7] - Sales of storage products have significantly increased in the first half of 2024, with prices stabilizing after a period of decline [7] Earnings Forecast - Revenue projections for 2024, 2025, and 2026 are 3.766 billion yuan, 4.378 billion yuan, and 4.996 billion yuan, respectively, with corresponding EPS of 0.78 yuan, 1.03 yuan, and 1.30 yuan [8] - The current stock price corresponds to PE ratios of 51, 39, and 30 for the years 2024, 2025, and 2026 [8]