MICROGATE(SZ:300319) EBSCN·2025-11-06 13:15Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company reported a revenue of 2.903 billion yuan for Q1-Q3 2025, representing a year-on-year increase of 21.71%. The net profit attributable to shareholders was 245 million yuan, up 1.53% year-on-year, while the net profit excluding non-recurring items decreased by 16.68% year-on-year [1] - The domestic consumer electronics industry continues to benefit from government subsidy policies, showing stable overall performance. Internationally, the export business, particularly in display modules, has seen a short-term surge due to U.S. tariff policies, leading to fluctuations in product structure [1][2] - The company is focusing on AI core applications such as computing cards, servers, and SSD/DDR, while also exploring opportunities in the broader AI market, including AI glasses and robotics, which are expected to contribute to incremental performance [2] Summary by Sections Financial Performance - For Q3 2025, the company achieved a revenue of 1.107 billion yuan, a year-on-year increase of 18.75% and a quarter-on-quarter increase of 9.04%. The net profit attributable to shareholders was 96 million yuan, down 1.11% year-on-year but up 10.16% quarter-on-quarter [1] - The gross margin for Q3 2025 was 17.90%, down 4.30 percentage points year-on-year but up 2.66 percentage points quarter-on-quarter. The net margin was 8.66%, down 1.92 percentage points year-on-year and stable quarter-on-quarter [1] Business Segments - The traditional application markets, including communication terminals and consumer electronics, have shown stable market shares, continuously contributing core profits to the company. The automotive market experienced a brief downturn in Q2 but has seen significant growth due to enhanced product competitiveness and demand from "global south" countries [2] - The company has enhanced its soft magnetic material capabilities through the acquisition of Anke Yuan, improving production efficiency and reducing overall costs [2] Profit Forecast and Valuation - The profit forecast for 2025-2026 has been adjusted downwards to 338 million yuan and 406 million yuan, respectively, with a new forecast for 2027 set at 501 million yuan. The corresponding PE ratios for 2025-2027 are projected to be 33X, 27X, and 22X [3][4]