Lontium(SH:688486) Minsheng Securities·2024-04-19 01:00Investment Rating - The report maintains a "Recommended" rating for the company [8][9]. Core Insights - The company's Q1 2024 performance exceeded expectations, with revenue reaching 104 million yuan, a year-on-year increase of 101.95%, and a net profit attributable to shareholders of 31.01 million yuan, up 324.85% year-on-year [1]. - The significant revenue growth is attributed to the recovery in consumer demand and the expansion of markets such as commercial displays and automotive [1]. - The company's advance payments increased from 17.75 million yuan in Q4 2023 to 42.45 million yuan in Q1 2024, indicating confidence in future growth [1]. Financial Performance Summary - The company is projected to achieve net profits of 165 million yuan, 215 million yuan, and 323 million yuan for the years 2024, 2025, and 2026, respectively, corresponding to price-to-earnings (PE) ratios of 36, 28, and 18 [8]. - The gross profit margin for Q1 2024 was 54.11%, with a slight decrease of 0.33 percentage points from the previous quarter [1]. - The report highlights the successful introduction of multiple high-definition video bridging chips into the automotive sector, with eight chips already certified by AEC-Q100 [4]. Market and Product Development - The company is actively expanding its product offerings, including 4K/8K ultra-high-definition video bridging chips and high-speed data transmission chips for various applications, including 5G communication [16]. - The automotive sector is a key focus, with the company developing in-vehicle SerDes chips that have entered the verification stage, supporting high-speed and low-speed data transmission [4][16].