Motorcomm Electronic Technology (SH:688515) Xiangcai Securities·2025-03-11 08:43Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of the stock [2]. Core Insights - In 2024, the company achieved a revenue of 404 million yuan, representing a year-on-year growth of 47.63%. However, the net profit attributable to the parent company was a loss of 198 million yuan, with a non-recurring net profit loss of 228 million yuan. The fourth quarter of 2024 saw a revenue of 138 million yuan, up 26.61% year-on-year and 24.32% quarter-on-quarter [3][4]. - The company has seen a significant increase in demand for its 2.5G PHY products, with single product revenue reaching 38.7 million yuan in the first half of 2024, following a revenue of 20.86 million yuan in 2023. The company has also completed the initial development of a 4-port 2.5G PHY product, which can replace single-port 10G products in certain scenarios [4][5]. - The YT9230 series switching chips were showcased at the IC China exhibition, with expectations for gradual market penetration. The overall market size for commercial Ethernet switching chips in China is projected to reach 3.54 billion yuan by 2025, with the segment for port rates below 10G expected to account for 40% of this market [5]. Financial Forecast - The company is expected to continue its revenue growth, with projections of 452 million yuan in 2025 and 525 million yuan in 2026, reflecting year-on-year growth rates of 11.7% and 16.1%, respectively. The net profit is forecasted to improve, with losses narrowing to 154 million yuan in 2025 and 48 million yuan in 2026 [6][9]. - The price-to-sales (P/S) ratios are projected to be 19.69 and 16.95 for 2025 and 2026, respectively, indicating a potential valuation increase as revenues grow [6].