WINGTECH(SH:600745) EBSCN·2024-04-17 12:01Investment Rating - The report maintains a "Buy" rating for the company with a current price of 33.83 CNY [1] Core Views - The company is expected to see a recovery in its ODM business in 2024, while the rapid development of AI PCs is anticipated to enhance its performance [1][4] - The company has successfully integrated into the AI PC supply chain, which is projected to significantly boost its revenue [2][4] - The smartphone market is showing signs of recovery, which is likely to drive growth in the company's ODM business [3] Summary by Sections Market Data - The company has experienced a relative performance decline of -12.63% over the past month and -31.98% over the past year [1] Financial Performance - In Q3 2023, the company reported a main business revenue of 15.206 billion CNY, a year-on-year increase of 11.90% and a quarter-on-quarter increase of 2.89% [2] - The net profit attributable to shareholders for the same period was 842 million CNY, reflecting a year-on-year increase of 10.62% [2] - The gross margin for Q3 2023 was 17.40%, down 2.84 percentage points year-on-year [2] Business Segments - The company is a leading semiconductor and product integration enterprise, providing services across various sectors including AIoT and automotive electronics [2] - The AI PC segment is projected to grow significantly, with IDC forecasting that the assembly ratio of AI PCs in the Chinese market will rise from 8.1% in 2023 to 84.6% by 2027 [2] - The company is actively expanding its product integration business, particularly in laptops and automotive electronics [3] Profit Forecast and Valuation - The net profit forecasts for 2023 and 2024 have been revised down to 2.338 billion CNY and 2.973 billion CNY, respectively, due to asset impairment from ceasing production of specific optical module products [4] - The current market capitalization corresponds to a PE ratio of 18 for 2023, 14 for 2024, and 13 for 2025 [4] Key Financial Metrics - The company is expected to achieve a revenue of 59.789 billion CNY in 2023, with a growth rate of 2.95% [5] - The projected net profit for 2024 is 2.973 billion CNY, with an EPS of 2.39 CNY [5] - The gross margin is expected to be around 16.8% in 2024 [6]