Thinkon Semi(SH:688233) Guotai Junan Securities·2024-05-10 05:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 31.88 CNY, down from the previous forecast of 32.23 CNY [12][13]. Core Insights - The company has reported a significant recovery in silicon material orders, achieving record revenue in silicon components for the first quarter of 2024, exceeding market expectations [12]. - The first quarter of 2024 saw the company achieve revenue of 0.58 billion CNY and a net profit of 1.46 million CNY, marking a turnaround from previous losses [12]. - The report projects an upward revision of EPS for 2024-2026 to 0.29, 1.17, and 2.00 CNY, reflecting a positive outlook on profitability as silicon material demand recovers [12]. Financial Summary - The company is expected to generate revenues of 0.313 billion CNY in 2024, 0.695 billion CNY in 2025, and 1.088 billion CNY in 2026, indicating substantial growth [12]. - The net profit for 2024 is projected at 0.05 billion CNY, with significant increases in subsequent years [12]. - The report highlights a recovery in operating profit margins, with an expected EBIT of 0.046 billion CNY in 2024, rising to 0.219 billion CNY in 2025 [12]. Valuation Metrics - The report includes a comparison of the company's valuation with peers, indicating a PE ratio of 71.16 for 2024, which is higher than the industry average [7]. - The company’s net asset return is projected to improve from -3.9% in 2023 to 2.8% in 2024, reflecting a recovery in profitability [12]. - The report notes that the company has a strong balance sheet, with total assets expected to reach 1.933 billion CNY in 2023 [12].